The Executive Chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, has urged real estate developers across Nigeria to embrace strict Know Your Customer (KYC) protocols to safeguard the industry from becoming a haven for money laundering.
Olukoyede gave the charge on Wednesday, August 6, 2025, during the Policy Dialogue on Critical Issues Affecting Nigeria’s Real Estate Ecosystem, held at the Aso Hall of Abuja Intercontinental Hotel. The event, organised by Law Corridor, brought together key players in the real estate sector, government regulators, legal experts, and private sector leaders to address systemic failures and develop policy-driven solutions for the industry.
In his keynote address titled “Tackling Illegal Property Sales, Fake Developers, and Unlicensed Agents,” the EFCC chairman decried the growing trend of illicit funds being funneled through real estate.
“Statistics and reports reveal that money laundering is rampant among real estate stakeholders,” Olukoyede said. “As a developer, even if it’s not yet a legal requirement, you must do KYC in the interest of your business. It doesn’t cost you anything, and it may protect you from losing everything.”
He warned that developers who fail to verify the source of their clients’ funds risk being implicated and having assets confiscated if it is later proven the funds were proceeds of crime.
“If someone uses stolen money to buy property from you, and we trace that money to your company, we will recover it,” he cautioned. “Don’t forget the legal principle of being an accessory to a crime. Ignorance is not an excuse.”
Olukoyede reaffirmed the EFCC’s willingness to support legitimate real estate operators, adding that his administration is committed to using the anti-graft agency’s powers to support economic growth, not stifle it.
“Real estate is a key driver of Nigeria’s economy. We want developers to succeed, but you must follow the rules. The difference between us and developed countries is simple: compliance,” he added.
Also speaking at the event, Harry Erin, Director of the EFCC’s Special Control Unit Against Money Laundering (SCUML), called for greater public awareness of the dangers of cash-based property transactions and the need to route all payments through recognized financial institutions.
“Even if it’s just ₦500,000, ensure that it is paid through a financial institution,” Erin advised. “Too many unregistered estate agents are operating in Nigeria. If anything goes wrong, you have no one to hold accountable.”
On the topic “Investment Compliance and Anti-Money Laundering in the Real Estate Sector,” the Director-General of the Bureau of Public Procurement (BPP), Adebowale Adedokun, emphasized the importance of going beyond KYC to demanding proof of funds from prospective investors.
“A significant portion of funding in Nigerian real estate comes from public procurement accounts. Developers must begin to ask: where is this money coming from?” he said. “Proof of funds helps verify the legitimacy of massive investments, especially in an under-regulated sector like real estate.”
The consensus at the policy dialogue was clear: to strengthen Nigeria’s real estate ecosystem, stakeholders must promote transparency, enforce compliance, and curb the flow of illicit funds into the sector.
