EFCC Orders Nigerian Miners to Report All PEP Transactions to Combat Fraud
The Economic and Financial Crimes Commission (EFCC) has ordered solid mineral miners across Nigeria to enforce strict Know Your Customer (KYC) protocols and report all business transactions involving Politically Exposed Persons (PEPs).
The EFCC Executive Chairman, Ola Olukoyede, issued this directive at the maiden Rivers State Mining Summit. The event, themed “Repositioning the Mining Sector in Rivers State for Optimal Beneficiation of All Stakeholders,” served as a platform to warn operators of strict penalties for compliance failures.
Olukoyede, who was represented by Audu Suji—the Head of the Special Control Unit Against Money Laundering (SCUML) for the Port Harcourt Zonal Directorate—emphasised that the mining sector is classified under Designated Non-Financial Businesses and Professions (DNFBPs). As such, operators must adhere to anti-money laundering regulations just like traditional banking institutions.
“The law wants DNFBPs to begin to do KYC, just like financial institutions do,” Olukoyede stated. “The purpose is to verify your identity with valid identity cards. And when you are selling, you should be sure of whom you are selling to.”
The anti-graft boss urged mining stakeholders to exercise enhanced due diligence when dealing with politically exposed persons. He clarified that PEPs extend beyond politicians to include all government appointees, elected officials, their family members, and close associates.
“From the President down to Councillor, all the appointees are all PEPs… when dealing with a PEP, carry out enhanced due diligence, because it is believed that they have access to public funds and there is a likelihood of abuse,” Olukoyede explained.
Compliance Credited for Nigeria’s FATF Grey List Exit
The EFCC noted that rigorous monitoring of the mining sector via SCUML directly contributed to Nigeria’s successful exit from the Financial Action Task Force (FATF) Grey List in 2025.
“Nigeria was delisted from this list through the efforts of the EFCC, NFIU, and other intelligence agencies,” Suji noted, reiterating that regular monitoring ensures the country stays compliant with international Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) regulations.
Meanwhile, the Chairman of the Miners Association of Nigeria, Hope D.D. Opusingi, lamented the heavy toll of illegal mining on the economy. He disclosed that mineral resources worth billions of naira are being illegally extracted and smuggled out of the country daily, starving local communities and all tiers of government of vital revenue.
While expressing gratitude for the EFCC’s oversight, Opusingi called for deeper collaboration between regulatory agencies and law enforcement to effectively dismantle illegal mining syndicates.
