Tackling Terrorism Financing

Terrorism is a global threat, and Nigeria, unfortunately, is one of the countries that faces a high level of terrorism. While attempts to combat terror in the nation continue, one primary concern is the many sources of terrorism financing, which have continued to fuel terrorism and other violent conflicts in Nigeria. Terrorism finance is the backbone of terrorist groups as funds go into buying weapons, recruiting militants, and operating terrorist organisations.

In recent years, there have been increasing concerns about the financing of terrorist activities within the country. Nigeria is ranked eighth among the top ten countries with the greatest levels of terrorism in the world. The Global Terrorism Index (GTI) 2023 evaluated terrorism’s impact in 163 nations. Nigeria ranked “very high” on terrorism impact, scoring 8.065. The federal government naming 15 entities that are said to be involved in terrorism financing has spotlighted the pressing issue of terrorism and terrorist financing. They include nine individuals and six Bureau De Change operators and firms.

Nigeria is one of the countries with the highest terrorism threat levels in the world. Evidently, between 2018 and 2023, the risk index score of terrorist financing stood at around 6.9 points. The risk of terrorism financing is measured using several indicators, such as the rule of law and financial regulations. Terrorist organisations employ a variety of methods to raise funds. These organisations often resort to legitimate and illegitimate means to finance their activities. The financial sector, especially, has been exploited for terrorism financing. The use of the financial sector indicates the increasing capabilities of some terrorist groups. Over time, some clandestine groups have used money changers, Point of Sale (POS) devices, wire transfers, and Designated Non-Financial Businesses and Professions (DNFBPs). The alleged involvement of Bureau de Change operators and firms in terrorism financing also points to the scope and depth of terrorism financing. This has been a significant challenge for Nigerian authorities, as the reporting institutions in the country currently have a weak capacity to identify suspicious transactions that may be related to terrorism financing.

Weak security and surveillance at national borders contribute to the issue of terrorism financing in Nigeria. This lack of control and monitoring allows terrorists, as well as small arms and light weapons, to infiltrate the country quickly. The former Chief of Defence Staff, Lucky Irabor, revealed that 137 out of about 261 borders in the North-East and North-West are unguarded.With such easy access, terrorist organisations can conduct operations and finance their activities more efficiently. Strengthening security measures at borders should be a priority for Nigerian authorities to prevent the inflow of funds and resources for terrorist activities.

The capacity gaps within law enforcement and regulatory agencies also hamper efforts to address the challenge of terrorism financing effectively. These institutions need to be adequately equipped and trained to detect and disrupt the financial networks of terrorist organisations. Without the requisite capacity, it becomes incredibly challenging to investigate and prosecute individuals involved in financing terrorism. A case that exemplifies the challenges Nigeria faces in combating terrorism financing is the prosecution and conviction of six Nigerians in the United Arab Emirates (UAE) in 2019. These individuals were found guilty of sponsoring terrorism and were sentenced to various terms of imprisonment. This incident highlights the pressing need for Nigerian authorities to take decisive action against terrorism financing within the Nigerian borders.

Poor collaboration on the part of law enforcement and regulatory agencies has contributed to the problem of terrorist financing in Nigeria. Effective information sharing is crucial in combating terrorism financing, yet there seems to be a lack of coordination among various agencies and institutions. This hinders the ability to track and intercept suspicious transactions and apprehend those responsible for financing terrorism.

Nigeria has made efforts over the years to address terrorism financing. Among these efforts is the Federal Government’s draft and implementation of the National Counter Terrorism Strategy (NACTEST) to combat terrorist operations nationwide. The enactment of Counter-Terrorism Financing (CFT) legislation to enhance Nigeria’s legal system for prosecuting terrorists and targeting terrorist funders has led to the identification and investigation of persons on terrorist financing.

Nigerian financial institutions must enhance their capacity to identify and report suspicious transactions related to financing terrorism. Training programs and technical assistance can bolster their capabilities in this regard. Also, Nigerian authorities should prioritise the strengthening of security measures at national borders to prevent the infiltration of terrorists and illicit funds. This may involve deploying advanced surveillance technologies and increasing personnel at border crossings. Furthermore, investment in training and equipment for law enforcement, regulatory, and intelligence agencies is essential.

Terrorism financing remains a significant challenge in Nigeria. The country faces a high level of terrorism threat, and various factors contribute to the funding of these activities. Weak capacity of institutions, inadequate security and surveillance at national borders, lack of capacity in law enforcement and regulatory agencies, and insufficient cooperation and collaboration among competent national authorities all contribute to the issue. Nigerian authorities must prioritise strengthening these areas to effectively combat terrorism financing and ensure the safety and security of its citizens.