Reps Push to Amend Money Laundering Law, Introduce Stronger Asset Recovery Measures

The House of Representatives on Wednesday took another step toward tightening Nigeria’s anti-corruption framework, as lawmakers passed for second reading a bill seeking to amend the Money Laundering (Prevention and Prohibition) Act, 2022.

The bill, sponsored by Hon. Yusuf Gagdi of the Kanke/Pankshin/Kanam Federal Constituency in Plateau State, is designed to modernize the country’s anti-graft system and make it more responsive to the evolving tactics used in financial crimes and illicit fund movements.

Presenting the general principles of the bill, Gagdi identified money laundering and illicit financial flows as “one of the most serious governance challenges confronting Nigeria today.” He noted that even with the 2022 Act in place, vast amounts of illegal funds continue to move through the financial and property sectors, often disguised through complex layers of transactions.

According to the lawmaker, the proposed amendment seeks to create a civil recovery system that allows the government to seize assets tied to unexplained wealth without relying solely on criminal prosecution. “The existing Act depends heavily on criminal convictions, which places an enormous evidential burden on law enforcement agencies,” Gagdi explained. “This loophole has slowed the recovery of stolen assets and allowed individuals with suspicious wealth to maintain extravagant lifestyles.”

He added that the new approach would balance the system by shifting the burden of proof to individuals found in possession of assets that do not align with their legitimate income. Gagdi further cited examples from the United Kingdom, Kenya, and South Africa, where similar civil forfeiture models have effectively promoted accountability and transparency.

The proposed amendment would also grant the Economic and Financial Crimes Commission (EFCC) and other anti-graft agencies the authority to obtain ex parte court orders to freeze assets suspected to be linked to corruption. Additionally, it provides a clear legal process for civil recovery and ensures transparency in judicial proceedings.

Gagdi stressed that once enacted, the legislation would make it harder for corrupt individuals to hide behind technicalities, compelling Nigerians to live within their lawful means while safeguarding public resources.

After deliberation, lawmakers unanimously approved the bill for second reading following a voice vote conducted by Speaker Dr. Tajudeen Abbas. The bill has been referred to the relevant House Committee for detailed consideration and a public hearing before it proceeds to the final stage.