Nigeria Looks to Blockchain and AI to Fight Financial Crime

How Nigeria Plans to Use Blockchain and AI to Combat Financial Crimes

To tackle financial crimes, a top Nigerian official has proposed using advanced technology to stop illegal money from leaving Africa. Olanipekun Olukoyede, the head of Nigeria's main agency fighting financial crime, thinks that blockchain and artificial intelligence (AI) could be strong tools in this fight.

At a big African conference on illegal money flows and taxes, Olukoyede shared a surprising fact: African countries lose about $88.6 billion every year because of these illegal activities. That's a lot of money that could be used to make lives better across the continent.

"If we could get this money back, we could improve our roads, hospitals, and schools," Olukoyede said. He shared a success story from 2020 when Nigeria recovered $311 million from the United States. This money had been taken illegally by a former Nigerian leader.

How Can New Technology Help?

But how can technology help? Olukoyede believes that blockchain, the system behind cryptocurrencies like Bitcoin, could make it easier to track money as it moves around. AI, which is like a super-smart computer brain, could spot unusual patterns that might show illegal activity.

These advanced solutions would be part of a larger plan. Olukoyede also asked for better laws and more training for those who combat financial crime. He stressed that countries need to work together, especially to address places that allow hiding money easily.

Nigeria is already taking steps to use these new technologies. In May, the country started reviewing its rules for using blockchain. This is to make sure Nigeria can take full advantage of this technology's benefits.

The country is also getting serious about AI. In April, another government agency suggested using AI to improve security. They're even setting up a special center to develop AI and robotics in Nigeria.

These moves show that Nigeria is trying to stay up-to-date with the latest tech trends. By using blockchain and AI, they hope to not only fight crime but also boost the country's economy and security.

However, using these technologies isn't simple. They're complex and can be expensive to set up. There's also the challenge of making sure they're used fairly and don't invade people's privacy.

Despite these challenges, many experts believe that technology will play a big role in fighting financial crime in the future. As criminals become more advanced, those working against them must stay updated.

For ordinary Nigerians, this could mean a future where it's harder for corrupt officials or criminals to steal public money. If successful, these efforts could lead to more money being available for things that improve daily life, like better schools, hospitals, and job opportunities.

It's still early days for these plans, and it will take time to see results. However, Nigeria's push to use blockchain and AI in the fight against financial crime shows that the country is thinking creatively about how to solve long-standing problems.

As this story develops, it will be interesting to see how Nigeria balances embracing new technology with protecting people's rights and privacy. If they get it right, it could set an example for other countries facing similar challenges.

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