By Francis Ekeh
The Central Bank of Nigeria has directed banks and other financial institutions to immediately freeze accounts of customers suspected of terrorism financing.
In a circular signed by Director Olubunmi Ayodele-Oni on Thursday, the CBN said the directive followed new designations by the Nigeria Sanctions Committee and the US Treasury’s Office of Foreign Assets Control OFAC.
The US recently listed three individuals and six entities allegedly tied to ISIS financing, including 3 Nigerian bureau de change operators based in Lagos and Kano.
In the statement, the apex bank asked all financial institutions to instantly freeze, without prior notice, all funds, assets, and other economic resources belonging to, owned, held, or controlled (directly or indirectly) by the designated persons and entities.
It directed financial institutions to screen existing customers, beneficial owners and transactions against the updated sanctions list.
The apex bank also ordered banks to ensure that no funds, financial services or economic resources are made available, directly or indirectly, to the designated persons and entities.
The regulator urged financial institutions to file suspicious transaction reports (STRs) with the Nigerian Financial Intelligence Unit (NFIU) for any confirmed or attempted matches.
It added: ”Banks are also required to submit reports to the CBN within 48 hours, detailing the status of any matches, affected accounts, amounts frozen and actions taken.Nil returns are mandatory where no matches are identified.”
It advised financial institutions to intensify monitoring for terrorism financing indicators, including rapid movement of funds, the use of money service businesses and transactions involving high-risk jurisdictions.
It warned that institutions that fail to comply with its directive risk sanctions under the Banks and Other Financial Institutions Act (BOFIA) 2020 and other applicable laws.
Terrorism financing in Nigeria is driven by a mix of illicit financial networks, cash-based economies, and regulatory gaps, with groups like Boko Haram and ISWAP exploiting informal systems to fund operations. The government actively counters these networks through targeted sanctions, bank account freezes, and strict financial surveillance.
On Tuesday, the federal government released a list of six persons and three entities sanctioned for terrorism financing. Secretary of the Nigerian Sanctions Committee, Beatrice Jedy-Agba, said the list was approved and published on 18 June.
This happened a day after the United States Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced the sanctions on Mukhtar Adamu, and three bureau de change companies over their alleged involvement in financing the terrorist group Islamic State West Africa Province (ISWAP).
The list of six persons and three entities released by the federal government as financiers of terrorism activities includes, Mr Adamu and two companies – Nine to Nine BDC and Generation BDC Limited – named in the US sanctions on Monday.
Mrs. Jedy-Agba, who doubles as the Solicitor-General of the Federation and Permanent Secretary, Federal Minister of Justice, said the US sanctions followed “the inclusion of Adamu and his companies as part of a broader update to the Nigeria Sanctions List approved and published on 18th June 2026.”
She welcomed the inclusion of Adamu and the two firms in the US designations.
The fresh list of designations by the Nigerian government, including Mr Adamu and the two firms linked to him, is as follows:
- Ibrahim Yakubu Ogirima (NLISWi.19)
- Muktar Muhammad Adamu (NLISWi.20)
- Adamu Chiroma (NLISWi.21)
- Ibrahim Abubakar (NLISWi.22)
- Abdullahi Umar Usman (NLISWi.23)
- Babangida Muhammed Adamu Hammajam (NLISWi.24)
- Abbal Bako & Sons Bureau De Change Limited (NLISWe.25)
- Generation Currency BDC Limited (NLISWe.26)
- Nine to Nine BDC Limited (NLISWe.27)
Mrs Jedy-Agba asked banks and designated non-financial businesses and professions, including lawyers, accountants and others, in Nigeria to immediately give effect to the designation of the six persons and three entities by freezing their assets and reporting them, any matches and their transactions to the appropriate authorities.
“The Federal Government reiterates its directive to all financial institutions and designated non-financial businesses and professions to continue to comply with all sanctions’ obligations, including asset-freezing requirements, the filing of Suspicious Transaction Reports and the reporting of all relevant matches to the appropriate authorities,” the statement said.
Furthermore, she said that the US sanctions also mean that all property and interests in property belonging to the designated individuals and entities that are within the United States or under the control of US persons are blocked. Also, US citizens and businesses are also generally prohibited from conducting transactions with them unless authorised by OFAC.
OFAC further warned that foreign financial institutions and other persons that knowingly facilitate significant transactions or provide material support to the sanctioned individuals or entities could themselves face US sanctions.
The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) had said in a statement on Monday that Mr Muhammad, also known as “Mukhtar Adamu Muhammad”, of facilitating financial transactions and money transfers on behalf of ISIS-West Africa, popularly known as Islamic State West Africa Province (ISWAP).
Sanctioned by OFAC along with Mr Muhammad are Nine To Nine Exchange Bureau De Change Limited, Generation Currency Bureau De Change Limited, and Manhattan Bureau De Change Limited, which OFAC alleged are owned, controlled or directed by Mr Muhammad and were used to move funds for the terrorist organisation.