How the EFCC Contribute Massively to the Devaluation of Naira -By Ajiboye Amos Olakunle

The Economic and Financial Crimes Commission (EFCC) was established in 2003 to combat financial crimes, including corruption, money laundering, and fraud. However, in recent years, the agency’s focus has shifted toward targeting ordinary Nigerians for minor offenses such as “naira abuse” while turning a blind eye to high-profile corruption cases involving billions of naira.

This selective enforcement has had unintended economic consequences. Rather than stabilizing the Nigerian economy, the EFCC’s aggressive crackdown on naira spraying at social events has created an atmosphere of fear, discouraging the use of the national currency and inadvertently increasing demand for the US dollar. As a result, the naira continues to depreciate at an alarming rate, hitting record lows against major foreign currencies.

The EFCC’s War on Naira Abuse: A Misguided Approach

Under Section 21 of the Central Bank of Nigeria (CBN) Act, it is a criminal offense to “mutilate, spray, or step on the naira.” While the law was designed to preserve the integrity of the national currency, the EFCC’s enforcement has been disproportionate, targeting ordinary citizens while ignoring systemic financial crimes perpetrated by the political elite.

International Comparison: Currency Mutilation Laws in the US and Other Developed Nations

Unlike Nigeria, many advanced economies do not criminalize the mutilation or misuse of their currencies. For example:

• United States: The U.S. Department of Treasury states that while defacing currency (such as writing on bills) may render them unfit for reissue, it is not a federal crime to destroy or misuse paper money.
• United Kingdom: The Bank of England does not penalize individuals for damaging banknotes, though deliberately defacing currency with intent to deceive (e.g., counterfeiting) is illegal.
• Canada, Australia, and the EU: These jurisdictions also do not prosecute citizens for spraying, stepping on, or even burning their own money, as long as no fraudulent intent exists.

This stark contrast raises questions about Nigeria’s heavy-handed approach. While developed nations focus on prosecuting real financial crimes such as fraud, money laundering, and embezzlement, Nigeria’s EFCC wastes resources arresting individuals for spraying money at parties.

Recent Cases Highlighting EFCC’s Selective Enforcement

1. The Arrest of a “Very Dark Man” at a Party (May 2025)
News went viral when EFCC operatives stormed a bank to arrest a social media activist without presenting a warrant. The agency defended the arrest, claiming the individual had engaged in naira abuse.
Critics argue that such heavy-handed tactics are unnecessary, particularly when compared to the EFCC’s reluctance to prosecute politically connected individuals accused of looting public funds.

2. Bobrisky’s Six-Month Prison Sentence (2024)
Controversial celebrity Bobrisky was sentenced to six months in prison for “spraying and stepping on the naira” at a social event.
Meanwhile, former Kogi State Governor Yahaya Bello, accused of laundering over ₦80 billion, remains at large, with the EFCC struggling to bring him to justice.
These cases illustrate a clear bias in enforcement: while ordinary Nigerians face severe penalties for minor infractions, powerful politicians and business elites enjoy near-total impunity.

How the EFCC’s Actions Are Fueling the Naira’s Devaluation

1. Fear of Using the Naira Drives Dollarization
The EFCC’s aggressive arrests have instilled fear among Nigerians, making them hesitant to use the naira at weddings, parties, and other social gatherings. To avoid legal trouble, many now opt to spray US dollars instead. This shift has two major consequences:

Increased Demand for the US Dollar: As more Nigerians seek dollars for social events, the demand for foreign currency rises, further weakening the naira.
Erosion of Confidence in the Naira: When citizens lose faith in their own currency, they abandon it in favor of more stable alternatives, exacerbating depreciation.

2. Ignoring the Real Economic Saboteurs
While the EFCC harasses individuals spraying small amounts of money, it largely ignores the key actors responsible for Nigeria’s economic crisis:

Politicians Who Loot Public Funds: Former governors, ministers, and lawmakers accused of embezzling billions face little to no consequences.
Forex Manipulators & Speculators: Commercial banks and Bureau de Change (BDC) operators hoard dollars, artificially inflating its value, yet the EFCC rarely investigates them.

By failing to tackle these major economic crimes, the EFCC allows the real culprits of naira devaluation to thrive while punishing ordinary citizens for minor offenses.

Selective Justice: The EFCC’s Double Standards

The EFCC’s biggest failure is its inconsistent application of justice. Some glaring examples include:

1. Politicians Escape Prosecution
• Godswill Akpabio: Despite multiple corruption allegations, the Senate President has yet to face trial.
• Yahaya Bello: The former Kogi governor, accused of massive fraud, has evaded arrest, with the EFCC appearing powerless to hold him accountable.

2. Banks and Forex Speculators Operate with Impunity
The naira’s collapse is partly due to speculative trading and hoarding by commercial banks and BDC operators, yet the EFCC rarely investigates these entities.

This selective enforcement erodes public trust in the EFCC and reinforces perceptions that the agency is a tool for political persecution rather than a genuine anti-corruption institution.

The Way Forward: Reform or Abolish the EFCC?

To stabilize the naira and restore confidence in Nigeria’s financial system, the government must consider the following steps:

1. Abolish the EFCC and Establish a Truly Independent Anti-Corruption Body
• The EFCC’s credibility has been irreparably damaged by political interference. A new, independent agency with stronger oversight mechanisms may be more effective.
• The focus should shift from targeting ordinary citizens to recovering stolen funds and prosecuting high-profile looters.

2. Refocus the EFCC’s Priorities (If Retained)
• End Arrests for Naira Abuse: The CBN should launch public awareness campaigns instead of criminalizing cultural practices.
• Prosecute High-Profile Corruption Cases: The EFCC must prioritize cases involving politicians and business elites accused of looting public funds.
• Crack Down on Forex Manipulation: The agency should investigate banks and individuals hoarding dollars to sabotage the naira.

Conclusion
Nigeria’s currency crisis requires serious structural reforms, not misplaced enforcement. The EFCC must decide: Will it serve the Nigerian people by fighting corruption at the highest levels, or will it remain a politically weaponized institution while the naira collapses? The answer will determine Nigeria’s economic future.

The EFCC’s obsession with arresting Nigerians for naira abuse is counterproductive. By discouraging the use of the naira and increasing dollar demand, the agency is inadvertently contributing to the currency’s devaluation. Meanwhile, its failure to prosecute high-profile looters and forex manipulators makes it complicit in Nigeria’s economic crisis.

If the naira is to recover, the EFCC must either undergo radical reforms or be abolished entirely. The agency should focus on recovering stolen funds and prosecuting the real economic saboteurs, not ordinary citizens spraying money at social events. Until then, the naira’s downward spiral will continue, and the EFCC will remain part of the problem rather than the solution.