Operatives of the Economic and Financial Crimes Commission arrested Mustapha Abdullahi, the Director-General of Nigeria's Energy Commission, on Wednesday.
He faces allegations of money laundering, sources familiar with the matter said on condition of anonymity.
Abdullahi had ignored two separate invitations from the EFCC to appear for questioning, officials disclosed.
The arrest took place in Abuja. He remains in EFCC custody, according to insiders.
President Bola Tinubu appointed Abdullahi to lead the Energy Commission on October 24, 2023. He replaced his predecessor in that role.
An agency source told Daily Trust the suspected fraudulent activities involve approximately N500 billion. Operatives secured a warrant before making the arrest, the source added.
"Yes, we have arrested him for alleged money laundering offences," the source confirmed. "He didn't honour invitations extended to him and is currently in our custody."
According to the insider, funds involved total about N500 billion. The source emphasized that Abdullahi remains lawfully detained.
Dele Oyewale, spokesman for the anti-graft agency, did not respond to calls seeking comment. His phone lines were unreachable at the time of reporting.