EFCC Launches Nationwide Probe Into Real Estate Over Money Laundering Concerns

The Economic and Financial Crimes Commission (EFCC) has commenced a sweeping investigation into Nigeria’s real estate sector, identifying it as a major channel for laundering stolen public funds. EFCC Chairman, Ola Olukoyede, revealed that the commission has already secured interim forfeiture orders for 15 estates suspected to be linked to illicit financial activities.

Speaking at a policy dialogue in Abuja on key issues affecting the real estate ecosystem, organised by the Abuja-based law firm The Law Corridor, Olukoyede disclosed that several estates across the country were being developed with stolen public funds, mostly by civil servants. According to him, many of these developments are abandoned when the flow of illegal funds stops, with some left incomplete for as long as two decades. He stated that a dedicated EFCC team has been set up to identify and verify ownership of estates across Nigeria.

Olukoyede emphasized the need for operationalising the Beneficial Ownership Register to expose the true owners behind suspicious corporate entities and real estate investments. He said this measure would strengthen transparency and help curb abuse within the sector. He also revealed that some individuals being investigated admitted to misappropriating public funds due to financial pressure, including the cost of living and tuition fees.

The EFCC chairman further criticised the prevailing structure of Nigeria’s real estate financing, highlighting how high interest rates from banks make it unviable for genuine investors. According to him, it is nearly impossible to secure loans at over 30 percent interest and still profit from real estate development, making the sector attractive for money laundering. He called on the government to introduce low-interest credit facilities through institutions like the Federal Mortgage Bank and Aso Savings and Loans to promote legitimate investment in housing.

Olukoyede warned that the country’s heavy reliance on cash-based transactions is fuelling corruption and urged a shift toward credit-based systems. He argued that without significant changes to how financial transactions are conducted, anti-corruption efforts would remain limited, no matter how many enforcement agencies exist.

Also speaking at the dialogue, Nigerian Bar Association President, Mazi Afam Osigwe (SAN), described Nigeria’s land administration system as archaic and opaque, noting that verifying property ownership in the country remains unnecessarily difficult. He compared it to more advanced systems abroad, where ownership records can be accessed instantly. He advocated for urgent reforms and the deployment of modern technology to ensure transparency and efficiency in property transactions.

Director-General of the Bureau of Public Procurement, Dr. Adebowale Adedokun, pointed out that public funds are often used to finance estate projects and emphasised the need to track how such funds are allocated and spent. He explained that poor project implementation and procurement irregularities often leave unaccounted funds, which end up being laundered through real estate investments. Adedokun stressed the importance of tighter procurement systems and improved accountability to prevent the diversion of public resources.

The event brought together stakeholders across law, procurement, and enforcement to discuss solutions to persistent irregularities in the real estate sector. Key focus areas included combating illegal property sales, regulating developers and agents, ensuring investment compliance, and strengthening anti-money laundering frameworks. Olukoyede urged developers to follow due process and carry out proper background checks on clients to avoid becoming complicit in financial crimes.