Nigeria faces rising financial crime risks and digital oversight challenges

Nigerian businesses are facing rising compliance costs as regulators intensify efforts to combat financial crimes. The Nigerian Financial Intelligence Unit (NFIU) reported 42,082 suspicious transaction reports (STRs) in 2025, with deposit money banks accounting for 92 percent of these filings. Key offenses identified include tax crimes (30 percent), fraud (21 percent), and money laundering (15 percent). The NFIU also noted an increase in reports involving politically exposed persons and warned of emerging risks such as identity laundering via pre-registered SIM cards and proxy accounts.

Simultaneously, officials are calling for the Central Bank of Nigeria to expand its regulatory oversight to include the broader digital ecosystem. Kashifu Inuwa, Director-General of the National Information Technology Development Agency, warned that traditional regulatory models are insufficient as banks become increasingly dependent on third-party cloud providers, telecommunications networks, and fintech partners. Inuwa emphasized that regulators need end-to-end visibility to prevent disruptions in external technology infrastructure from destabilizing the wider financial system.