A proposed new law advancing in Nigeria’s House of Representatives could grant the Economic and Financial Crimes Commission (EFCC) sweeping powers to seize assets deemed to be “unexplained wealth” without needing a criminal conviction.
The controversial bill, which passed its second reading on Wednesday, seeks to amend the Money Laundering Act of 2022. Its sponsor, Hon. Yusuf Gagdi, who chairs the House Committee on Navy, argued that the current legal framework is insufficient for tackling the sophisticated methods used to hide the proceeds of crime.
The core of the proposed legislation is the introduction of a “civil forfeiture” mechanism. This would allow anti-graft agencies like the EFCC to apply to a High Court for orders to restrain or confiscate assets if an individual cannot satisfactorily explain how they were acquired through legitimate income.
In his lead debate, Hon. Gagdi lamented that the existing law places a “high evidential burden” on law enforcement, often frustrating the timely recovery of stolen assets. He stated that this evidential difficulty, combined with legal technicalities and deliberate delays, has allowed many individuals who cannot justify their wealth to live lavishly “beyond the reach of the law.”
“This bill seeks to strengthen the existing anti-money laundering legal framework by introducing a civil recovery mechanism that enables the recovery of unexplained wealth through non-conviction-based proceedings,” Gagdi explained.
He presented the bill not as a punitive tool, but as a “preventive and corrective measure” designed to promote transparency and accountability in both the public and private sectors. The ultimate goal, he said, is to ensure that “every Nigerian lives within the means of their legitimate income” and that the proceeds of corruption are not shielded by political or economic power.
The proposed amendments would establish a clear legal pathway for civil recovery orders. If enacted, the EFCC could apply for a restraining order on a property or funds it suspects are from illicit origins. The respondent would then be required to demonstrate, on the balance of probabilities, the legitimate source of those assets. This shifts a significant part of the legal burden from the prosecutor to the asset owner.
Hon. Gagdi pointed to several other jurisdictions, including the United Kingdom, Kenya, and South Africa, where similar unexplained wealth orders have proven effective. He argued that such laws are a global best practice for curbing corruption, deterring impunity, and facilitating the recovery of stolen public assets.
“The fight against corruption and illicit financial flows remains one of the most defining governance challenges of our time,” the lawmaker stated, urging his colleagues to support the bill. He described it as “a bold step towards ensuring that crime does not pay in Nigeria.”
The passage of such a bill could mark a significant shift in Nigeria’s anti-corruption efforts. For years, high-profile corruption cases have been stalled in courts for a decade or more, with assets remaining in the hands of the accused throughout the lengthy legal process. This law aims to shortcut that process, separating the recovery of assets from the often protracted criminal trial.
However, the proposal is also likely to raise serious concerns among civil liberty and legal rights advocates. Critics of similar laws elsewhere have warned of the potential for abuse, arguing that they could be used to target political opponents or that they undermine the fundamental legal principle of being presumed innocent until proven guilty.
After a debate in the chamber, the bill was referred to the House Committee on Financial Crimes for further legislative action, including a detailed review and a public hearing where stakeholders can voice their support or concerns. The bill must still pass through a third reading in the House, be reconciled with any version from the Senate, and finally receive presidential assent before it becomes law.
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