EFCC Boss: Demand Proof Of Source Or Risk Asset Recovery

In a bold move to sanitize Nigeria’s growing real estate sector, the Executive Chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Ola Olukoyede, has issued a stern warning to real estate developers and agents nationwide to carry out thorough background checks on investors before accepting funds for property transactions.

The anti-graft chief declared that failure to do so could result in the recovery of properties purchased with illicit wealth.

Olukoyede sounded this warning on Wednesday, August 6, 2025, during the Policy Dialogue on Critical Issues Affecting Nigeria’s Real Estate Ecosystem, a high-level event held at Aso Hall of the Abuja Intercontinental Hotel. The forum, hosted by Law Corridor, convened regulators, public officials, private sector leaders, and legal and property experts for a solutions-driven conversation on transparency and systemic reform in the real estate ecosystem.

Speaking on the topic, “Tackling Illegal Property Sales, Fake Developers and Unlicensed Agents,” Olukoyede minced no words in stating that real estate has become a haven for money laundering.

“Statistics and field reports reveal that money laundering is rampant among real estate stakeholders. As a developer, you must conduct Know Your Customer (KYC) checks, even if the law does not compel it. It’s in the best interest of your business,” he stated.

He warned that property acquired with stolen funds could be seized even if the developer claims ignorance. “Once we trace stolen funds to your property, we will recover it. If you don’t verify your customers, you risk being an accessory to a crime,” Olukoyede added, emphasizing that the EFCC’s focus is not to cripple legitimate businesses but to foster growth through compliance.

He also noted that under his leadership, the EFCC is committed to using its mandate to stimulate economic growth, not stifle it. “There’s no successful fight against corruption without a viable economy. We want to see you succeed, but you must play by the rules,” he said, highlighting the importance of regulatory compliance and professionalism in real estate practice.

Joining Olukoyede in driving home the message of reform was Harry Erin, Director of the Special Control Unit Against Money Laundering (SCUML), who urged buyers and sellers to route transactions through licensed financial institutions. He raised concern over the growing number of unregistered estate agents in Nigeria.

“Everybody is an estate agent today. That’s dangerous. Regulation is weak, and people lose their life savings to fraudsters. My advice: ensure every transaction, even if it’s ₦500,000, goes through a bank. It creates a financial trail and accountability,” Erin said.

Further stressing the importance of due diligence, Adebowale Adedokun, Director-General of the Bureau of Public Procurement (BPP), challenged developers to go beyond KYC and demand proof of funds from investors.

“Public sector money is increasingly finding its way into estates. Developers must ask: where is this money coming from? Show us the historical path that led to this capital. That’s how we build a transparent real estate system,” Adedokun said in his presentation titled “Investment Compliance and Anti-Money Laundering in the Real Estate.

“The dialogue underscored a consensus: the lack of regulation and due diligence in real estate is a weak link in Nigeria’s anti-corruption efforts and economic development plans. The EFCC, through SCUML and its partners, has now made it clear, real estate developers can no longer plead ignorance when accepting questionable funds.

Olukoyede concluded by assuring legitimate developers that the EFCC remains an ally, not a stumbling block: “We are not here to run your businesses down. Our job is to support you to succeed because when you thrive, Nigerians get jobs, and the temptation to commit financial crimes reduces. But you must do the right thing.”

Grace Olaogun

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