Counter-Terrorism Financing and National Security in Nigeria: Assessing the Role of Financial Intelligence (Iconic Research and Engineering Journals)

Summary

• The study assesses the role of financial intelligence in countering terrorism financing in Nigeria between 2015 and 2025, using qualitative documentary analysis.p.1
• Terrorism financing in Nigeria became increasingly complex, shifting from Boko Haram-related networks to a broader mix of kidnapping-for-ransom, illegal mining, extortion and smuggling.p.9
• The Nigerian Financial Intelligence Unit (NFIU) improved its detection capacity through enhanced monitoring of suspicious financial activities.p.10
• Counter-terrorism financing measures produced significant but mixed outcomes for national security.p.11
• Nigeria's National AML/CFT Strategy 2023–2027 stresses cooperation among the NFIU, the Central Bank of Nigeria, the Economic and Financial Crimes Commission and international partners.p.12
• Effectiveness is limited by weak inter-agency coordination, technological constraints, inadequate monitoring of informal financial activities, corruption and implementation gaps.p.13

Key insights

1. Kidnapping-for-ransom evolved into a structured financial enterprise used by terrorist organisations and criminal networks.p.9
2. The FATF standards require countries to establish effective financial intelligence systems, conduct risk assessments and strengthen targeted financial sanctions.p.3
3. The NFIU receives suspicious transaction reports from financial institutions, designated non-financial businesses and professionals and analyses them against domestic and international databases.p.10
4. Weak coordination between intelligence producers and operational agencies can reduce the practical security impact of financial intelligence.p.11
5. Persistent insecurity shows that existing measures have not completely eliminated terrorist financial capabilities.p.11
6. Financial intelligence is presented as a critical form of preventive security that can reduce terrorists' access to financial resources.p.13
7. The authors recommend combining financial intelligence with measures against poverty, unemployment, corruption and weak governance.p.14