EFCC Identifies Financial Crimes as Major Drivers of Violent Non-State Activities in Nigeria

The Economic and Financial Crimes Commission, EFCC, has identified financial crimes, governance gaps and weak accountability structures as key enablers of the operations of violent non-state actors in Nigeria, with grave implications for national security and economic development.

The Executive Chairman of the Commission, Mr. Ola Olukoyede,  stated this on Tuesday, April 15, 2025, in a lecture to members of the Executive Intelligence Management Course 18 of the Institute National Institute of Security Studies, Abuja. In his paper titled “Violent Non-State Actors in Security Management: Issues, Challenges and Prospects for Peace and Development in Africa: EFCC Perspective”, Olukoyede warned that violent non-state actors ranging from insurgents, bandits, kidnappers and separatist agitators to cybercriminals pose a significant threat to Nigeria’s territorial integrity, political stability, economic prosperity, and social cohesion.

The EFCC boss who spoke through the Director of Public Affairs, Commander of the EFCC, CE Wilson Uwujaren, lamented that the activities of these groups have not only led to mass killings and destruction of public infrastructure, but also triggered massive economic losses, rising food inflation and displacement of rural communities.

According to him, “To say that the activities of violent non-state actors have disrupted the rhythm of our national security strategy and undermined the nation’s economic equilibrium, political and social order, is to state the obvious.”

The anti-graft czar noted that while the kinetic response by the military and other security agencies remains central to the counter-terrorism strategy, the non-kinetic aspects, particularly financial surveillance and regulation, are crucial in choking the funding lifelines of violent actors.

He pointed to EFCC’s interventions through the Special Control Unit against Money Laundering, SCUML, regulation of non-governmental organisations operating in conflict zones, and monitoring of financial transactions in both traditional and emerging payment channels, including virtual currencies.

“The Commission equally strengthened surveillance and monitoring of transactions in designated non-financial sectors especially trading in foreign currencies through the bureau de change, and the sudden popularity of virtual assets especially crypto currencies as outlets for international transactions with the guarantee of anonymity  which suits the terror groups”, he said.   

 Olukoyede also cited successful investigations and prosecutions of military officers implicated in the misappropriation of funds meant for counter-insurgency operations as part of the Commission’s contribution to transparency and accountability in the sector.

He stressed that terror organisations’ sustained operations for over a decade point to deep financial networks and international linkages, with the proliferation of small arms and light weapons also having strong ties to money laundering and illicit financial flows.

“Some of the terror organisations in Nigeria have survived for more than ten years, which is evidence that they have managed to establish a steady stream of funding outside of the Nigerian financial system,” he said.

The EFCC Chairman identified challenges facing the Commission in its task, including poor inter-agency collaboration, widespread cash-based transactions, gaps in telecoms regulation, and weak compliance with Know Your Customer, KYC requirements by financial institutions and fintech operators.

Despite these challenges, Olukoyede expressed optimism that Nigeria would overcome the menace of violent non-state actors through collective national resolve, inter-agency synergy, and improved governance.

In his closing remarks, the Director of Studies at the National Institute of Security Studies, Mr. Hyginus Ngele, thanked the EFCC Chairman for the depth of insight shared, expressing the hope that the Chairman would continue to honour future invitations to engage with security professionals.

He urged the course participants to internalise the lessons from the lecture and distinguish themselves positively when the mantle of leadership falls upon them.

The lecture was part of a series of engagements designed to prepare participants for strategic roles in national security and intelligence management.