Terrorism: Stakeholders advocate multi-agency approach to combat illicit financial flows

By Femi Oyelola

Illicit financial flows (IFFs), which refer to the illegal movement of money or capital from one country to another, have become a significant challenge for Nigeria, fueling corruption, banditry, drug trade, and terrorism.
These financial flows often involve corrupt practices, tax evasion, money laundering, and organized crime.
Investigations reveal that corruption catalyzes IFFs, facilitating tax evasion and channeling funds toward financing terrorism.
In Nigeria, corruption is rampant, manifesting in various forms, from large-scale contract fraud to petty bribery. Therefore, addressing corruption is crucial to combating IFFs.
Dr. Yahuza Getso a security expert said
terrorist organizations also rely on financial networks to support recruitment, logistics, and attacks. Groups like Boko Haram and the Fulani militia, which have been designated as terrorist organizations in Nigeria, engage.
“In various crimes, including kidnapping, armed robbery, and drug trafficking, to finance their activities.’ He said
Recently, security forces in Isa Local Government Area of Sokoto State apprehended a notorious arms trafficker, Hamza Suruddubu, who has allegedly been supplying weapons to terrorist groups operating in the region.
Suruddubu, an arms dealer from Eastern Sokoto, has played a significant role in the trafficking and distribution of firearms from Zamfara State to terrorist strongholds in Eastern Sokoto.
He is believed to be a key supplier of weapons to notorious bandits, including Bello Turji, Boka, and Halilu Buzu, and he exploits illicit financial flows to launder money to neighboring countries to acquire arms.
Similarly, security agencies recently arrested two suspects, Gunners Jonathan and Moses, in Sanga LGA of Kaduna State. They were en route to Zamfara to supply weapons to bandits.
Kaduna State Police Command recently also arrested some suspects who were transporting rustled cows from Kaduna en route to Abuja
The Command Public Relations Officer, DSP Mansir Hassan, said the suspects disclosed that they received the stolen cows from a notorious bandit kingpin known as Lagu, who has been terrorizing areas in southern Kaduna and along the Kaduna-Abuja route.
This, according to experts, is the capital transfer aspect of IFFs.
The battle against illicit financial flows is not limited to security agencies; the Federal Inland Revenue Service (FIRS) has intensified its clampdown on IFFs, tax evasion, and trade mispricing to safeguard Nigeria’s financial integrity and enhance revenue collection.
Dr. Zacch Adedeji, Special Adviser on Media to the FIRS Chairman, announced the establishment of the Proceeds of Crime Management and Illicit Financial Flows Coordinating Directorate (POCM-IFF), which is pivotal in addressing this menace.
Concerned about this issue, Rev. David Ugolor, Executive Director of African Network for Environmental and Economic Justice (ANEEJ,) mentioned that the project “Tackling Illicit Financial Flows through Asset Recovery and Management and Countering Money Laundering, Terrorism Financing, and Proliferation Financing (AML/CFT/PF) in Nigeria.” aims to build partnerships across government and civil society to ensure that recovered assets are transparently managed and reinvested for the benefit of Nigerians.
This, he surmised, will help ensure asset recovery processes are more effective and accountable.
The Honourable Minister of Justice and Attorney-General of the Federation, Prince Lateef Fagbemi SAN, stressed that “Illicit financial flows remain one of the most significant threats to sustainable development, governance, and national security.
“Together, we can ensure that recovered resources are not only returned but are invested in critical sectors that directly benefit the Nigerian people.” Speaking through the Head of the Asset Recovery and Management Unit, Ali Bozi, Fagbemi pledged continued support to cooperate, coordinate, and back this project to achieve its objectives.
The UK Government has also expressed its concern over the dangers posed by IFFs and reaffirmed its commitment to support Nigeria in combating this menace.
Jehanzeb Khan, Illicit Finance Advisor at the FCDO Nigeria Office, stated, “Asset recovery is a central pillar in these efforts. Confiscating and recovering the proceeds of crime are essential for leveraging sanctions against offenders and securing justice for victims.
“ Evidence has shown that putting stolen assets toward public goods and services is the best way to ensure that anti-corruption efforts benefit ordinary citizens.”
Experts have identified that corruption often acts as a catalyst for IFFs, facilitating tax evasion and channeling funds toward financing terrorism.
Prof. Ahmed Abubakar from the Faculty of Law at BUK noted that corruption takes many forms, from massive contract fraud to petty bribery, and addressing this issue is crucial in combating IFFs.
He also emphasized that money laundering is a critical component of IFFs, allowing individuals to disguise the illicit origin of their funds.
“Money laundering in Nigeria often involves complex financial transactions, making it challenging to track and prosecute offenders.
“Furthermore, the drug trade is a significant contributor to IFFs in Nigeria. The country serves as a major transit point for narcotics, with organized crime groups exploiting the financial system to launder their proceeds.
“Banditry has also become a substantial security challenge in Nigeria, with various groups involved in these illicit activities.
Banditry has emerged as a significant security challenge in Nigeria, with groups engaging in kidnapping, armed robbery, and other criminal activities to finance their operations
Some experts argue that these bandits serve as the financial wing of Boko Haram, highlighting the complex web of financial crimes in the country.
In response, Juliet Ibekaku Nwagu, the Executive Director of the African Center for Governance, Asset Recovery, and Sustainable Development, noted that her organization, which co-implements the project “Tackling Illicit Financial Flows through Asset Recovery and Management, and Countering Money Laundering, Terrorism Financing, and Proliferation Financing (AML/CFT/PF) in Nigeria,” will provide technical support and follow-up training for investigators and prosecutors.
This initiative aims to align their work more closely with the Proceeds of Crime (Recovery and Management) Act, enhancing the effectiveness and accountability of asset recovery processes.
Dr. Orji Ogbonnaya Orji, the Executive Secretary of the Nigeria Extractive Industries Transparency Initiative (NEITI), emphasized the urgency of addressing systemic vulnerabilities, stating, “Illicit financial flows are not abstract statistics.
They represent stolen opportunities—lost revenues that could have funded schools, hospitals, roads, and jobs.
If we do not close the loopholes in oil, gas, and mining governance, asset recovery will continue to be a revolving door—recovering what is stolen today only to lose more tomorrow.”
He underscored the necessity of the project, reiterating, “If we don’t close the loopholes in the oil, gas, and mining industries, asset recovery will remain a revolving door—recovery today only to lose it tomorrow.”
Research indicates that to effectively combat illicit financial flows (IFFs), Nigeria must prioritize strengthening its legal frameworks, promoting transparency, and enforcing asset recovery mechanisms.
International cooperation and capacity building are also essential in supporting national efforts.
Recently, the country has made progress in combating terrorism financing, with over 100 terror financiers convicted in the past two years.
This success illustrates the effectiveness of targeted efforts to disrupt terrorist financial networks.
To sustain these efforts, stakeholders advocate for a multi-agency approach in combating IFFs.
Nigeria’s anti-corruption agencies, financial regulators, and security agencies must collaborate to prevent financial crimes and promote stability, they argued.