Nigerian Financial Intelligence Unit warns of new terrorist financing tactics

The Nigerian Financial Intelligence Unit (NFIU) has identified several emerging methods used by terrorist financiers to move and conceal illicit funds within Nigeria. According to the NFIU’s 2025 annual report, networks are increasingly exploiting legitimate digital and financial systems to evade detection.

One primary tactic identified is “identity laundering,” where male terrorist commanders and logistics managers use bank accounts opened in the names of female relatives, such as wives or sisters, to move money. In some cases, the women may be unaware that their accounts are being utilized. Additionally, facilitators are using proxy SIM cards—including those registered to deceased individuals or unrelated third parties—to obscure the identity of beneficiaries during mobile banking transactions.

Security analyst Dr. Bulama Bukarti warned that terrorist groups are also utilizing social media platforms like Telegram and Instagram to conduct fake charity appeals. These groups solicit donations for purported humanitarian or educational causes, often collecting funds internationally before breaking them into smaller amounts and sending them to Nigeria via remittance services to bypass financial regulations. Experts emphasize the need for stronger links between Bank Verification Numbers (BVNs) and SIM cards to improve tracking capabilities.