National Security Adviser (NSA) Malam Nuhu Ribadu has called for financial institutions in Nigeria to take a more active role in the country’s counter-terrorism efforts, particularly in the fight against terrorism financing. Speaking at the third Counter-Terrorism and Counter-Insurgency seminar in Abuja, Ribadu, represented by Major-General Adamu Laka, emphasized that terrorism is not only fueled by extremist ideologies but also by the financial networks that allow terrorist groups to function.
He noted that without adequate funding, terrorist organizations would be severely limited in their ability to recruit, train, and execute attacks. Hence, financial institutions must be at the frontline in detecting, preventing, and reporting suspicious activities that could be tied to terrorism. Ribadu stressed that as a member of the Inter-Governmental Action Group Against Money Laundering in West Africa (GIABA), Nigeria is committed to aligning its efforts with global best practices in anti-money laundering (AML) and counter-terrorism financing (CTF).
The NSA also highlighted the importance of regulatory bodies and supervisory authorities in establishing frameworks to guide financial institutions in compliance with AML and CTF regulations. Regular assessments and audits, along with a risk-based approach, are necessary to ensure that financial institutions susceptible to terrorist exploitation are identified and monitored closely.
To support this, Ribadu pointed to the guidelines established by the Financial Action Task Force (FATF), urging financial institutions to be vigilant and proactive in their efforts to combat terrorism financing.
At the seminar, Major-General Garba Wahab (retd), Director-General of the Nigerian Army Resource Centre (NARC), explained that a major challenge in Nigeria is that much of the economy operates in the informal sector and is cash-based. This reality makes it easier for terrorist groups to fund their operations without being detected by formal banking systems or financial intelligence units.
Wahab emphasized the need for greater collaboration between organizations like the Nigerian Financial Intelligence Unit (NFIU), the Economic and Financial Crimes Commission (EFCC), and the Central Bank of Nigeria (CBN) to address these challenges. He noted that successfully tracing and halting terrorism financing could significantly reduce insurgency and terrorist activities in the country.
Adding to this, the Chief of Army Staff (COAS), Lieutenant-General Taoreed Lagbaja, highlighted the complexity of Nigeria’s security challenges. Represented by Major-General Emmanuel Emekah, Lagbaja noted that terrorism has provided cover for other criminal activities like kidnapping, armed robbery, and politically motivated violence. He pointed out that insurgent groups have increasingly localized their funding sources through activities like smuggling, extortion, and drug trafficking, making it more difficult for authorities to track and intercept terrorist financing.
The seminar underscored the critical role financial institutions must play in safeguarding the country, alongside military and security agencies, as Nigeria continues to battle terrorism and insurgency across its six geopolitical zones.