As business owners, including hoteliers and club patrons, voice their discomfort over the Economic and Financial Crimes Commission’s raids on their establishments, SEGUN ADEBAYO in this report delves into the growing backlash and explores the legal complexities and the social impact of these operations on their investments.
NIGHTLIFE in major Nigerian cities is traditionally known as a haven for leisure and luxury, but in recent months, these leisure centres have become battlegrounds in the Economic and Financial Crimes Commission (EFCC)’s war against internet fraud. Known in local parlance as “Yahoo Yahoo,” these fraudulent schemes involve deceit and theft through various online platforms, causing significant financial and emotional harm to victims.
Sunday Tribune investigation revealed that EFCC’s intensified efforts to curtail these activities have seen a surge in raids on high-end clubs and hotels, locations believed to be frequented by suspected fraudsters. These operations are often dramatic, with agents besieging venues in a show of force that captures the attention of the public and media alike.
The crackdown by the agency has raised numerous questions and concerns, particularly regarding the methods employed by the agency. The anti-graft’s high-profile raids on clubs and hotels have led to a controversial wave of arrests, with many people calling out the anti-graft agency to be more civilised in their approach to making arrest, especially at public places where many innocent people usually flock.
While the intent behind these operations is clear, the execution, according to findings has been problematic leaving regular patrons at nightclubs and hotels with tales of regrets and sorrow. In the last few months, Sunday Tribune observed how numerous accounts of innocent people being caught in the ‘crossfire’ have become a burning issue.
Patrons and hotel guests, unaware of any illicit activities, have found themselves arrested, detained, and oftentimes paraded as criminals. These incidents have not only caused personal distress to many who have been caught in the web of legal tussle but also damaged reputations and livelihoods.
It was gathered that a recent raid at a popular night club in Ilorin, Kwara State, no fewer than 90 people were caught in the web while other patrons were said to have escaped with injuries sustained in their bid to avoid being arrested by the agency during one of the raids they called “sting operations”.
Speaking with Sunday Tribune about how his night of celebration turned a nightmare, John Adewale, a young entrepreneur, recounted his harrowing experience of being wrongfully detained during a night-out with friends. “I was at the club to celebrate a business deal when suddenly, EFCC agents stormed in. At first I thought they knew who or group of persons they had come for, but the indiscriminate slaps at intervals from their officers jolted me back to reality. Despite having no connection to any fraudulent activities, I was arrested and paraded alongside real suspects. It took days to clear my name,” he shared.
Findings by Sunday Tribune revealed that EFCC’s operations, often conducted in the dead of the night or the wee hours, have been marked by aggressive tactics and a wide net that ensnares innocent bystanders leaving many to question their mode of operation and rules of engagement.
The sweeping nature of the arrests means that many innocent people, who are simply at these venues to enjoy a night-out, find themselves caught in the EFCC’s dragnet. The agency’s mission to root out cybercrime has, unfortunately, cast a shadow over legitimate businesses, leaving owners and patrons in fear of sudden raids.
Nightclubs and hotels, particularly those in bustling urban centers, have found themselves at the forefront of these sting operations. Owners have reported that their establishments have been ransacked, with property damage and loss of business following each raid. The fear of being labeled a fraudster has driven many patrons away, significantly impacting the local nightlife economy.
From Ibadan to Lagos, Port Harcourt to Osogbo, Abuja to Akure, and Ilorin to Abeokuta, Nigeria’s nightlife and hospitality businesses thrive on the patronage of individuals with ‘hefty pockets,’ commonly referred to as ballers. These establishments, including clubs and hotels, heavily depend on the spending power of young professionals, from bankers and entrepreneurs to content creators and business moguls.
It was gathered that club owners, keenly aware of the spending power of these affluent patrons, often devise elaborate strategies to attract and retain them. These strategies include offering exclusive VIP packages, hosting high-profile events, and providing personalised services, all designed to cater to the tastes and preferences of their wealthy clientele.
By continually introducing new incentives and experiences, club owners ensure that these high-spending individuals remain loyal, frequently returning to enjoy the luxurious amenities and vibrant atmosphere.
“You need to understand, as a club owner or hotel manager, how to continually attract customers. People want something new anytime they visit even if they come every day. They also want to be assured of their safety and security. No one wants to go to a place where after enjoying a meal or a bottle of champagne, they are spending the next few days in the cell and regretting coming to your place. So this symbiotic relationship between club owners and affluent patrons is a critical factor in the thriving nightlife and hospitality sector across Nigeria,” a club manager told Sunday Tribune.
While it might be easy to conclude that anyone who spends lavishly on expensive liquor is involved in fraudulent activities, such assumptions are not always accurate. Despite the widespread belief that hard-earned money isn’t typically spent so extravagantly, many of these patrons are legitimate high earners whose lifestyles draw significant attention.
Their frequent display of wealth at clubs and hotels, often through flashy cars and heavy spending, does not necessarily indicate involvement in internet fraud, despite the public perception.
In a conversation with one such individual, who identified himself as Snow, it becomes evident that appearances can be deceiving. Snow’s lifestyle and his professional endeavours are often misconstrued. He explained that he has been a heavy investor in tech and forex trading for years, training many others in the process.
“When I come to the club with my friends, who are also into various fields of information technology, it is not unusual for us to be noticed because we drive flashy cars and spend heavily,” Snow said. “But that doesn’t suggest we are into internet fraud. I abhor such stereotypes and do not encourage them.”
He further elaborated on the harassment faced due to these misconceptions. “This is why some of us move with police escorts because of the usual harassment we face at the hands of the EFCC and other security agencies. Nigerians need to understand there is a lot of money in trading online and creating content. They need to stop categorising young men living a good life as fraudsters.”
Felix Bamidele, a content creator, shared a harrowing experience of how he was wrongfully arrested by the EFCC during a night raid in Port Harcourt. He recounted, “They burst into the hotel while we were sitting at the lounge. We thought it was the usual electricity interruption. The next five minutes felt like a movie scene as we were asked to go on our knees and bundled into their buses. You would have concluded they were armed robbers or kidnappers. That was the last time I visited the hotel, and many of my friends stopped patronising places where they had similar experiences. How could you just enter a place and pack everybody away because you are looking for Yahoo boys? It is very wrong and unprofessional.”
Impact on businesses
The perceived aggressive tactics employed by the EFCC is also believed to be having detrimental impact on legitimate businesses. A serial entrepreneur, who simply gave his name as Chidi, owns salons in Lagos and Akobo area of Ibadan, described how one of his outlets was raided and destroyed during an EFCC operation.
He acknowledged the hardworking nature of many young Nigerians like him, stating, “If you don’t know how people work hard to make money, you can’t dictate how they spend it. I advocate for modest living and spending, but that is my life. I can’t force anyone to live theirs the same way. There are days I overshoot my budget and go overboard with friends and family at clubs. When you see me on those days, you might assume I am into shady business. The approach to enforcing arrests should be preceded by warrants that prepare business owners and entrepreneurs for such visits.”
Lamentation galore from patrons, event organisers
One incident that highlights the EFCC’s controversial methods occurred at a popular hotel, where patrons were abruptly awakened by the sound of breaking doors and shattering plates. An employee, who requested anonymity, described the scene as “commando-like,” with operatives forcefully gaining access to rooms by breaking down doors. The aftermath of the raid was evident, with damaged furniture and shattered plates strewn across the premises.”
Femi Adisa, a guest who revisited the hotel around 8:00 a.m. in search of his phone, recounted his experience: “We did not hear anything at first. It was only when they turned off the generator that we realised something was wrong. We heard someone crying out, and then the chaos began. The operatives were heavily armed and showed no mercy.”
This is just one of many cases reported. Recently, EFCC operatives raided two hotels and event venues in the Alagbaka area of Akure, Ondo State. The operation, which took place around 1 a.m., resulted in the arrest of over 50 individuals suspected of engaging in internet fraud. Among those detained was a groom celebrating his bachelor’s eve with friends.
During the raid, the EFCC seized numerous vehicles, laptops, high-end smartphones, and other items. Eyewitnesses reported that the operatives entered nightclubs and lounges, tear-gassing and beating patrons indiscriminately. Even two soldiers were allegedly injured as tear gas canisters were fired inside one of the clubs.
In a conversation with Sunday Tribune, Ambassador Ayo George, the CEO of In-House Entertainment Limited, expressed deep concern over the impact of EFCC raids on nightlife and hospitality businesses. “So people can’t have their leisure in peace anymore?” he questioned, highlighting the growing tension between patrons seeking to enjoy themselves and the increasingly aggressive actions of the EFCC.
Ambassador George pointed out a troubling disparity in how these raids are conducted, noting that, “There are classes and levels to the raid. There are places EFCC won’t go. It’s just like the hotel raids too. There are hotels they can’t go.”
He further lamented the lack of collective action among business owners, particularly in Ibadan, where he believes lounges have been too passive. “Ibadan lounges don’t like spending money; if not, by now, all of them should have jointly called out EFCC in an open letter. But in Nigeria, the case is always who will bell the cat. Nobody wants to come forward; we prefer to die in silence.”
Ambassador George emphasised the power imbalance at play, where politicians remain untouchable by the EFCC, leaving smaller players in the hospitality industry vulnerable. “The politicians have become untouchable for them, and so they resorted to arresting Yahoo boys and club ballers. Imagine the EFCC is yet to arrest Yahaya Bello. A very sad story.”
Beard Gang leader and event organiser, Akintayo Pivotal, lamented the increasing frequency of EFCC raids on clubs, lounges, and hotels, noting the damaging impact on the nightlife business—a crucial source of livelihood for him and many others.
“The issue of EFCC raiding clubs, lounges, and hotels is gradually killing the nightlife business, which is the core for someone like me to put food on my family’s table and sort out numerous responsibilities on my shoulders,” Akintayo said.
He highlighted how even those running legitimate businesses are becoming wary of spending on luxury items at events due to the uncertainty and fear of spies working for the agency. “I can tell you for free that even people doing legit businesses stop buying expensive bottles at my parties because of the uncertainty around spies working for the agency around town.”
Akintayo voiced his frustration, calling for the EFCC to redirect its focus towards more significant targets. “I really wish the agency could go after unfortunate politicians to redeem the glory of the land,” he remarked.
A popular disc jockey, DJ Camzy pointed out that while nightlife in many cities has become increasingly vibrant, particularly after the lockdown occasioned by COVID-19 over the last five years, the fear of the EFCC is now casting a shadow over this growth, particularly in some cities where nightlife business had experienced a lull.
“Ibadan nightlife has become viable in the last five years, and there’s a tendency it will grow even better, but gradually, the fear of EFCC, even for clean individuals, is slowing things down drastically,” he explained.
He pointed out that the uncertainty surrounding these raids is also deterring investors, who are now hesitant to put their resources into an industry fraught with such risks.
Business owners groan
A growing number of business owners are speaking out against EFCC’s heavy-handed approach. They argued that the raids are not only damaging their businesses but also violating the rights of their customers.
“The EFCC’s actions are a gross overreaction,” said Abayomi Ajipe, Chairman of the Ondo State Lounge and Club Owners Association (OSLACOA). “We understand the need to combat fraud, but treating everyone as a suspect is not the way to do it.”
“We never expected what we experienced on Saturday,” Ajipe said. “Akure is a peaceful community. Initially, we thought they were armed robbers until I made calls to authorities. It’s unfortunate that they took away cameras, phones, and CCTVs, along with about 127 people. The government needs to address this unacceptable behaviour. Since the incident, business has come to a halt.”
A club owner at Bodija area of Ibadan, Isaac Ariwoola, echoed similar sentiment, saying some businesses that once thrived on vibrant nightlife now face dwindling patronage. He lamented how many of his customers stopped visiting his lounge because they feared they could be picked up anytime and framed for difference offences not committed.
He noted that customers are now wary of visiting establishments that have been targeted or stormed by EFCC more than once, fearing they could be caught up in a raid and wrongfully accused.
“You can imagine a place where EFCC agents have raided more than once, the psychological and financial toll on business owners is immense, as they grapple with the loss of income and the damage to their reputation. I am not against EFCC carrying out their duty, but it has to be done in a way that it won’t affect people’s means of livelihood,” he noted.
Reflecting on the quality and class of nightlife venues, a club owner, Jagaban, acknowledged that some spots are less likely to be targeted by the EFCC, making them safer options for those looking to enjoy a night out without fear. “I’ll defer to what you said earlier about lounge owners investing in their business to ensure quality and class. There are some spots you’re almost certain that EFCC won’t come to raid. I’d rather go to those few spots than try to make sense of being picked at some known rough spots,” he said.
Ayo Abass Akinwande, speaking on behalf of Signatures Elixir, detailed the brutality of the raids: “They came with about 10 unregistered Toyota buses, armed and wearing red jackets. They beat our security personnel and forced everyone to lie down on the floor, using snooker sticks to ensure compliance. Both male and female customers were treated mercilessly. Tear gas was released inside the club, causing medical emergencies that our staff had to handle.”
EFCC not empowered to arrest anyone by mere suspicion ―Lawyers
Critics have argued that the EFCC’s methods often trample on due process, with individuals being arrested without proper evidence or warrants. This practice, according to them, not only infringes on personal freedoms but also raises serious questions about the legality and ethicality of such operations.
Speaking with Sunday Tribune, Gbenga Makinde, a seasoned legal expert, emphasised that while the EFCC possesses the right to arrest like any other security agency, there are clear boundaries that must not be crossed. “The EFCC has the authority to carry out arrests, but the way they’ve been executing these operations is deeply troubling. I personally witnessed an incident where EFCC officials chased a young man to the brink of danger. It was shocking. You don’t chase someone as though they were an armed robber unless there is a clear and present danger.”
Makinde also addressed the legality of the EFCC’s hotel raids, an issue that has garnered significant attention. “When someone is staying in a hotel, there is an expectation of privacy and protection. The EFCC cannot simply storm a hotel and make arrests without a warrant. There needs to be clear evidence that the individual is involved in financial fraud. You can’t just apprehend someone in a bar or a club under the guise of suspicion without proper legal backing. The rights to freedom of movement and association are enshrined in our laws.”
“Hotel owners and managers must come together to fight for their rights. If the EFCC shows up without a warrant or credible evidence, the hotelier has every right to refuse entry to protect their guests. Raiding a hotel without proper legal documentation is not only a violation of the guest’s privacy but also a direct breach of the law. This is not just a legal battle; it’s a fight for the integrity of their businesses and the trust of their customers.”
Also reacting, another legal expert, Busuyi Olawuyi, echoed similar sentiments, underscoring the importance of adhering to due process. “Hotel owners and managers need to be aware of their legal rights and responsibilities. If the EFCC shows up without a warrant or credible evidence, the hotelier has every right to refuse entry to protect their guests. Raiding a hotel without proper legal documentation is not only a violation of the guest’s privacy but also a direct breach of the law.”
“The agency’s overzealousness is a serious concern. It’s not just about following the law; it’s about maintaining public trust. Without transparency, these actions appear more like intimidation than legitimate law enforcement,” she added.
In his submission, Olasupo Bada, a lawyer and notary public, said: “It is important to state that the presumption of innocence is available not just to individuals but also to business entities. There is a need for balance and fairness in the activities of EFCC and other law enforcement agencies. It is important for the EFCC to be involved more in intelligence gathering.
“That said, any raid on hotels and clubs even where there is an allegation of fraudulent activities would not give the right or power of invasion to EFCC or any person (s). It is an infraction of the fundamental rights of those businesses and the individuals involved to be paraded over allegations. It amounts to asking the businesses and the individuals to prove their innocence. It is obviously contrary to our law.”
The EFCC’s mandate
The EFCC Establishment Act was first enacted in 2002 and amended in 2004. The Act commissions the EFCC to combat economic and financial crimes, thereby enabling the commission to prevent, investigate, prosecute and penalise economic and financial crimes.
Beyond the legal implications
A social critic, Otunba Martins Adebamigbe, spoke on the social impact of these raids, saying the vibrant nightlife scene, a cornerstone of urban culture and socialisation, is now under threat.
According to him, regular patrons are increasingly staying away, and the once lively atmosphere of clubs and hotels has been replaced by a palpable sense of fear and unease. The community’s trust in law enforcement is steadily eroding, with many questioning whether they can enjoy their leisure time without the risk of harassment or wrongful detention.
As the controversy surrounding these raids continues to grow, it is clear that a delicate balance must be struck between fighting financial crime and upholding the fundamental rights of citizens.
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