The Nigerian Senate has expressed concern over the rising threat of terrorism financing in the country.
Security analysts warn that funding for insurgent groups has increasingly shifted to untraceable channels, complicating enforcement efforts.
The Central Bank of Nigeria (CBN) and the Nigerian Financial Intelligence Unit (NFIU) have reported unusual financial flows that may indicate illicit transactions.
Officials note that terrorism financing often involves layering of funds through legitimate businesses, informal banking systems, and cash transfers.
The Economic and Financial Crimes Commission (EFCC) has initiated investigations into accounts suspected of supporting extremist activities.
Lawmakers argue that existing laws may be insufficient to track and prosecute financial crimes linked to terrorism.
The Terrorism (Prevention) Act 2011 criminalises the provision of funds to terrorist organisations, but enforcement remains a challenge.
Senators have highlighted cases where shell companies and non-profit organisations were allegedly used as conduits for terrorist funding.
The committee on banking and finance has invited CBN officials to brief the Senate on mechanisms for detecting suspicious financial activities.
Experts note that international cooperation is critical, as funds often originate from or pass through foreign jurisdictions.
Financial institutions are required to file suspicious transaction reports (STRs) under anti-money laundering (AML) regulations.
Despite these measures, compliance gaps remain, allowing some networks to operate undetected.
The Nigerian Deposit Insurance Corporation (NDIC) has emphasised the need for banks to strengthen due diligence and internal monitoring systems.
Lawmakers have proposed amendments to enhance penalties for entities found complicit in terrorism financing.
The Senate committee on security services has also recommended increased funding for investigative agencies.
Civil society organisations stress that transparency in charitable donations is necessary to prevent exploitation by extremist networks.
Reports suggest that hawala networks and informal remittance channels have been used to move funds without detection.
Security agencies have conducted raids on suspected operatives and frozen accounts linked to terrorism financing.
The Financial Action Task Force (FATF) has placed Nigeria under observation to ensure compliance with international anti-terror financing standards.
Banking experts caution that overly stringent regulations could disrupt legitimate businesses and humanitarian organisations.
Lawmakers argue that a balance is needed between national security and economic activity.
Several bills have been tabled in the Senate aimed at tightening scrutiny over cross-border financial flows.
The EFCC has highlighted successful prosecutions of individuals and organisations engaged in moving funds to extremist groups.
Investigations revealed the use of cryptocurrencies and online payment platforms in circumventing traditional banking oversight.
Some senators advocate for increased training and resources for financial intelligence units to detect sophisticated schemes.
Officials note that collaboration with regional bodies such as ECOWAS is critical to monitor and prevent cross-border terrorism financing.
Public awareness campaigns have been launched to educate citizens on reporting suspicious financial activities.
The NFIU reports that anonymised donations and unregistered NGOs remain high-risk vectors for terrorism financing.
Law enforcement agencies continue to enhance data analytics capabilities to identify patterns indicative of illicit funding.
The Senate has urged the executive to improve coordination among ministries, agencies, and financial institutions.
Experts warn that failure to act decisively may undermine Nigeria’s security and international standing.
Legislators emphasise that combating terrorism financing is not only a legal obligation but a national security imperative.
The combination of regulatory enforcement, international cooperation, and public vigilance is seen as essential to unmask culprits effectively.
Senators have committed to periodic reviews of the legal framework to ensure adaptability to evolving financing methods.
The outcome of these legislative efforts will influence Nigeria’s ability to disrupt terrorist operations and secure financial systems.
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