By Kehinde Ibrahim, Lagos
The Central Bank of Nigeria (CBN) has directed all banks, payment service banks, and other regulated financial institutions to immediately freeze accounts, funds, and assets associated with six individuals and four Bureau de Change (BDC) operators recently designated for alleged involvement in terrorism financing activities.
The directive, issued through a circular to financial institutions nationwide, follows sanctions imposed by the Nigeria Sanctions Committee (NIGSAC) and the United States Department of the Treasury’s Office of Foreign Assets Control (OFAC) under Executive Order 13224, as amended. The measures form part of broader efforts by Nigerian and international authorities to disrupt financial networks linked to extremist organisations.
The latest action comes shortly after the United States government designated several Nigerian nationals and Nigeria-based foreign exchange operators for allegedly facilitating financial transactions on behalf of the Islamic State West Africa Province (ISWAP), a terrorist group active within the Lake Chad Basin region.
In the circular signed by Olubunmi Ayodele-Oni on behalf of the Director of the Compliance Department, the CBN identified the sanctioned individuals as Muktar Muhammad Adamu, Babangida Muhammed Adamu Hammajam, Abdullahi Umar Usman, Ibrahim Abubakar, Adamu Chiroma, and Yakubu Ogirima Ibrahim.
The apex bank also named four Nigeria-based Money Service Businesses and Bureau de Change operators allegedly owned or controlled by the designated individuals. These include Generation Currency Bureau de Change Limited, Manhattan Bureau de Change Limited, Nine to Nine Exchange Bureau de Change Limited, and Abbal Bako & Sons Bureau de Change Limited.
According to the CBN, the sanctions are immediately enforceable and binding on all regulated financial institutions. The regulator stated that the directive aligns with both domestic and international counter-terrorism financing obligations aimed at safeguarding the integrity of Nigeria’s financial system.
“The Central Bank of Nigeria hereby notifies all banks and other financial institutions of recent sanctions designations issued by the Nigeria Sanctions Committee and the United States Department of the Treasury, Office of Foreign Assets Control, pursuant to Executive Order 13224 (as amended), relating to terrorism and terrorism financing,” the circular stated.
The CBN noted that the Nigeria Sanctions List was updated on June 18, 2026, and instructed financial institutions to identify and freeze, without prior notice, all funds, assets, and economic resources belonging to or controlled, directly or indirectly, by the designated individuals and entities.
The directive also extends to companies, organisations, and other entities in which the sanctioned persons collectively or individually hold a 50 per cent or greater ownership interest.
Financial institutions were further prohibited from making available any funds, financial services, or economic resources to the affected individuals and entities, whether directly or indirectly.
As part of the compliance requirements, banks and other regulated institutions have been instructed to immediately file Suspicious Transaction Reports (STRs) with the Nigerian Financial Intelligence Unit (NFIU) for any attempted or completed transactions involving the designated persons or entities.
In addition, institutions must submit detailed compliance reports to the CBN within 48 hours, indicating whether any matches were identified, the number of affected accounts, the value of assets frozen or restricted, and the actions taken to enforce the directive. Institutions that identify no matches are also required to file mandatory nil returns.
Beyond the immediate asset freeze, the apex bank directed financial institutions to strengthen monitoring and surveillance mechanisms aimed at detecting terrorism financing risks. These include identifying unusual fund movements, structured transactions designed to evade detection, activities involving money service businesses and informal value transfer systems, as well as transactions connected to high-risk jurisdictions.
The CBN also instructed banks to conduct comprehensive reviews of customer relationships and historical transaction records to identify any previous, ongoing, or attempted dealings involving the designated individuals and organisations.
