By Nkechi Eze
The Executive Chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, has called on real estate developers in Nigeria to adopt stringent Know Your Customer (KYC) practices as a necessary tool to prevent the infiltration of illicit funds into the sector.
Olukoyede gave this charge on Wednesday, August 6, 2025, while speaking at a high-level forum titled “Policy Dialogue on Critical Issues Affecting Nigeria’s Real Estate Ecosystem,” held at the Aso Hall of the Abuja Intercontinental Hotel. The event, organized by Law Corridor, brought together key players from regulatory bodies, the private sector, legal community, and real estate professionals for robust conversations on challenges facing the real estate industry and policy interventions required to reposition the sector for greater transparency and sustainable growth.
Speaking on the topic, “Tackling Illegal Property Sales, Fake Developers and Unlicensed Agents,” Olukoyede warned that real estate has become a hotbed for money laundering activities in Nigeria, urging developers to be proactive in vetting their clients and transactions.
“By virtue of what we have gathered and based on available data, we have discovered that money laundering is very rampant among real estate developers and stakeholders,” he said. “As a developer, the first thing that must come to your mind is to do KYC. Even if the law has not yet made it mandatory, do it in the interest and survival of your business.”
The EFCC Chairman stressed that developers who ignore KYC procedures risk becoming accomplices in laundering proceeds of crime, stating that the Commission will not hesitate to recover such assets when traced. “If somebody steals money and uses it to buy property from you, and we trace that money to you, we will recover it because you cannot sit on the proceeds of crime,” he warned.
He further clarified that the EFCC’s anti-corruption efforts are not designed to cripple businesses but to promote integrity and growth within the economic ecosystem. “One of the key concepts of my operational strategy is to use the EFCC’s mandate to stimulate the economy. Real estate is critical to our economic development. But for you to succeed, you must play by the rules,” Olukoyede emphasized.
He lamented that many developers venture into the business without understanding the legal and regulatory frameworks that govern the sector. “The difference between Nigeria and countries where things work is compliance with rules. That’s what we lack,” he noted.
Assuring the real estate community of the Commission’s support, Olukoyede encouraged developers to engage the EFCC whenever necessary. “Our doors are open. We’re not interested in making your businesses collapse. Our job is to ensure you succeed because when you do, more Nigerians get employed, and the propensity for financial crimes will drop,” he said.
Also speaking at the event, the Director of the Special Control Unit Against Money Laundering (SCUML) in the EFCC, Harry Erin, echoed Olukoyede’s concerns over the lack of effective regulation in the real estate space, particularly with regard to unlicensed estate agents.
He advised the public to route all financial transactions, regardless of the amount, through recognized financial institutions in order to remain on the right side of anti-money laundering laws. “Even if it’s a payment of just N500,000, ensure it goes through a bank. The law criminalizes cash transactions above certain thresholds. And when dealing with estate agents, insist on registered ones, so you have a legal path to redress if anything goes wrong,” Erin said.
The Director-General of the Bureau of Public Procurement (BPP), Adebowale Adedokun, also made a compelling case for deeper transparency in the sector. Speaking on “Investment Compliance and Anti-Money Laundering in Real Estate,” Adedokun called on developers to go beyond KYC checks and start demanding verifiable proof of funds from investors.
“Where does the money being used in real estate come from? Majorly from public sector procurement accounts. That’s why real estate must not become a laundering destination,” he stated. “We need to know the origin of the funds behind these multi-billion naira estates. Show us how you built your business to the point where you can fund such investments.”
Adedokun noted that the sector’s poor regulation has made it susceptible to the influx of illicit funds, calling on authorities to institute stronger safeguards and compliance mechanisms.
