The Central Bank of Nigeria (CBN) has introduced a strengthened supervisory framework aimed at preventing Nigerian banks and other financial institutions from being exploited for terrorism financing and related abuses.
In a statement released yesterday, Hakama Sidi-Ali, the apex bank’s Acting Director of Corporate Communications and Investor Relations, said terrorism financing supervision is now one of the CBN’s key priorities. The move forms part of the bank’s broader commitment to safeguarding the integrity of Nigeria’s financial system against illicit actors.
The enhanced focus spans four core areas: how financial institutions assess and manage terrorism financing risks; how they monitor transactions for potential red flags; the implementation of targeted financial sanctions; and the reporting of suspicious transactions linked to terrorism.
Rather than adopting a reactive stance, the CBN will apply a risk-based approach. Institutions considered more vulnerable to terrorism financing risks will face heightened scrutiny through both on-site and off-site supervision.
“This supervisory focus also supports Nigeria’s ongoing domestic and international cooperation on counter-terrorism financing, counter-proliferation financing, financial integrity, and the protection of the financial system. Further supervisory engagement will be undertaken as appropriate,” Sidi-Ali stated.
She added that the CBN will continue enforcing effective Anti-Money Laundering, Combating the Financing of Terrorism, and Countering Proliferation Financing (AML/CFT/CPF) controls across the sector in line with existing legal and regulatory requirements.
The announcement comes against the backdrop of recent actions by the Nigeria Sanctions Committee (NSC). In line with the Terrorism Prevention and Prohibition Act (TPPA) 2022, the NSC designated six individuals and three entities as terrorist financiers and added them to the Nigeria Sanctions List.
The individuals are:
• Babangida Muhammed Adamu Hammajam – linked to terrorism financing and support for Islamic State West Africa Province (ISWAP)
• Abdullahi Umar Usman – for providing material support through repeated financial transactions
• Ibrahim Abubakar – for terrorism financing and membership of ISWAP
• Adamu Chiroma – for using Bureau De Change (BDC) operators and related entities to move funds linked to terrorist activities
• Muktar Muhammad Adamu – for facilitating transactions connected to the ISWAP Okene cell financing network
• Yakubu Ogirima Ibrahim – for providing material and financial support to the ISWAP Kogi cell
The sanctioned entities are:
• Nine to Nine BDC Ltd (RC No: 1462752)
• Generation Currency BDC Ltd (RC No: 1555604)
• Abbal Bako & Sons Bureau De Change (BN: 2323328)
All three entities were listed for facilitating the movement of funds tied to ISWAP financing networks.
A national circular has directed all financial operators to immediately identify and freeze, without prior notice, any funds, assets, or economic resources belonging to the designated persons and entities, and to report such actions to the Secretariat of the Nigeria Sanctions Committee.