Central Bank of Nigeria Freezes Accounts Linked to Terrorist Financing
The Central Bank of Nigeria (CBN) has mandated all banks and financial institutions to promptly freeze accounts and assets associated with six Nigerian individuals and four Bureau de Change (BDC) operators due to their alleged involvement in terrorist financing.
New Sanctions Effective June 18, 2026
This directive, announced in a circular dated June 24, 2026, aligns with Nigeria’s efforts to disrupt financial networks believed to support terrorism. It follows the inclusion of these individuals and entities in the latest sanctions list authorized by Nigerian authorities.
Regulatory Compliance Emphasized
As per the circular referenced CMD/FCS/PUB/CIR/002/011, the updated Nigeria Sanctions List will be effective from June 18, 2026, and is binding on all regulated financial institutions within the country. The CBN has instructed institutions, including payment service banks, to identify and freeze all funds and assets owned or controlled directly or indirectly by the designated individuals and entities, without prior notice.
Aligning with Anti-Money Laundering Efforts
This directive supports Nigeria’s anti-money laundering and counter-terrorist financing framework and aims to impose targeted financial sanctions against individuals and entities identified by relevant authorities for their potential involvement in illicit activities.
U.S. Sanctions Prompted Local Action
This action follows recent sanctions by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) against Nigerian national Mukhtar Adamu and three currency trading companies, believed to be linked to financing the Islamic State West Africa Province (ISWAP), a terrorist group active in Nigeria and the Lake Chad region.
List of Designated Individuals and Entities
In response to the U.S. sanctions, Nigerian authorities updated their sanctions registry, identifying several individuals and companies implicated in terrorist financing. The individuals named include Ibrahim Yakubu Ogilima, Adam Chiroma, Ibrahim Abubakar, Abdullahi Umar Usman, Babangida Muhammad, and Adamu Hamajam. The BDC operators affected include Abbal Bako & Sons Bureau De Change Limited, Generation Currency BDC Limited, Nine to Nine BDC Limited, among others.
Industry Response and Future Implications
Chairman of the Association of Money Exchange Operators of Nigeria (ABCON), Aminu Gwadebe, emphasized the necessity of not judging the entire BDC industry based on the actions of a few. He stated that the majority of licensed BDC operators adhere strictly to Nigeria’s legal and regulatory frameworks.
Enhancing International Cooperation Against Financial Crimes
These latest sanctions exemplify the growing collaboration between Nigerian authorities and international partners in the fight against terrorist financing and money laundering. Observers predict that this move will reinforce Nigeria’s dedication to global standards for counter-terrorism financing while enhancing scrutiny within the foreign exchange sector.
