The Economic and Financial Crimes Commission (EFCC) has issued a stern warning to real estate developers, urging them to conduct thorough background checks on investors or risk losing illegally acquired funds used in property transactions.
Speaking at a policy dialogue in Abuja on Wednesday, EFCC Executive Chairman Ola Olukoyede emphasised that developers must adopt Know Your Customer (KYC) protocols to verify the legitimacy of buyers’ income sources. Failure to do so, he said, could lead to the seizure of properties purchased with illicit funds.
“By virtue of empirical data we have gathered, we have discovered that money laundering is rampant among real estate developers and stakeholders in the sector,” Olukoyede stated at the event, organised by Law Corridor. “As a developer, the first thing that must come to your mind is that you have to do KYC. Even if the law has not made it mandatory, in the interest of your business, do it.”
He warned that developers who ignore due diligence could face asset forfeiture under Nigeria’s anti-money laundering laws. **”If somebody steals money and uses it to buy property from you and we trace that money, we will recover it. You cannot sit on the proceeds of crime,” he said.
Olukoyede stressed that the EFCC’s enforcement strategy is not aimed at stifling business but at ensuring economic growth through transparency. “One of the key concepts of my operational strategy is to use the EFCC’s mandate to stimulate the economy,” he said. “Real estate is one of the key sectors we are looking to for rapid development, but stakeholders must play by the rules.”
He contrasted Nigeria’s lax regulatory environment with stricter systems in developed economies, where compliance is non-negotiable. “The difference between our country and developed nations is just compliance with rules. That’s what we are lacking here,” he noted.
Harry Erin, Director of the EFCC’s Special Control Unit Against Money Laundering (SCUML), raised concerns over unlicensed estate agents facilitating fraudulent transactions. “Everybody is an estate agent in Nigeria, and this lack of regulation is disturbing,” he said. “If you deal with an unregistered agent, you risk losing your money with no legal recourse.”
Erin advised Nigerians to avoid cash transactions above ₦500,000 and instead use financial institutions for traceability. “Money laundering laws criminalise large cash payments. Even if it’s ₦500,000, go through a bank,” he said.
Adebowale Adedokun, Director-General of the Bureau of Public Procurement (BPP), called for stricter scrutiny, urging developers to demand “proof of funds” from investors. “KYC is not enough. We need to know where the money is coming from,” he said. “If you’re funding a ₦10 billion estate, show us how you built that wealth.”
Adedokun highlighted that public sector funds often flow into real estate without proper oversight, making the sector vulnerable to corruption. “Real estate is poorly regulated, so it’s easy to hide dirty money there,” he said.
Olukoyede assured legitimate developers of the EFCC’s support, stating that the agency’s goal is “not to destroy businesses but to ensure they thrive within the law.” “When you succeed, you employ more people, and crime reduces,” he said. “Our doors are open for guidance—use us before fraudsters exploit you.”
The event, attended by regulators, legal experts, and industry leaders, concluded with a consensus that Nigeria’s real estate sector must adopt stronger transparency measures to curb fraud and boost investor confidence.
As the EFCC intensifies its anti-money laundering drive, developers now face a clear choice: comply with due diligence or risk losing both profits and property to asset recovery.
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