Nigeria’s capital market regulator, the Securities and Exchange Commission, has directed an immediate freeze on multiple accounts across the financial system as part of intensified efforts to combat terrorism financing and disrupt illicit financial networks.
The sweeping directive affects individuals and corporate entities recently flagged by authorities and placed on the Nigeria Sanctions List by the Nigeria Sanctions Committee. In total, 13 entities—comprising 10 individuals and three companies—are impacted by the order.
According to the Commission, the action is backed by provisions of the Terrorism (Prevention and Prohibition) Act, 2022, which empowers relevant authorities to freeze assets linked to designated persons or groups without prior notice. The directive was communicated through an ოფიციal circular issued to capital market operators and stakeholders nationwide.
The SEC made it clear that the order takes immediate effect and must be implemented without delay. It stressed that all operators within the capital market are legally bound to comply, warning that failure to do so could undermine national efforts to curb financial flows linked to criminal activities.
“The directive to freeze accounts and halt all transactions with the flagged entities is binding on all capital market operators and stakeholders,” the Commission stated.
As part of the directive, operators have been instructed to urgently identify any accounts associated with the listed individuals and companies. Once identified, such accounts must be frozen immediately, with all ongoing or future transactions halted. Additionally, all affected assets, as well as any attempted dealings involving the designated entities, must be reported promptly to the Nigeria Sanctions Committee Secretariat.
The Commission emphasised that there is no room for hesitation, noting that delays in enforcement could weaken efforts to disrupt networks involved in terrorism financing. Compliance teams across financial institutions are therefore expected to act swiftly and decisively.
Further details from the SEC revealed that some of the individuals affected by the sanctions have prior convictions related to terrorism financing. These convictions were reportedly handed down by the Abu Dhabi Federal Court of Appeal in April 2019 and were linked to activities associated with the extremist group Boko Haram.
Authorities disclosed that the offences involved raising funds in Dubai and transferring the proceeds into Nigeria to support terrorist operations. The individuals convicted received sentences ranging from 10 years imprisonment to life sentences, highlighting the severity of the offences.
The Commission also expressed concern over the role of corporate entities in facilitating illegal financial flows. It noted that some of the companies included on the sanctions list were allegedly used as conduits for moving funds across borders while concealing the true nature of the transactions.
“This highlights a pattern where corporate vehicles are used as channels for financial flows, reinforcing the need for heightened scrutiny of business entities within the financial system,” the SEC stated.
The regulator clarified that the asset freeze is not intended as a punitive measure but rather as a preventive mechanism aimed at cutting off financial lifelines before funds can be used to support terrorism.
“The asset-freezing mechanism is preventive rather than punitive, designed to disrupt financial support systems for terrorism before funds can be deployed,” the Commission explained.
In addition to issuing the directive, the SEC warned of severe consequences for non-compliance. It stated that institutions or operators who fail to implement the order could face both civil and criminal liabilities, as well as significant reputational damage that could affect their standing in the financial industry.
“The implications for non-compliance are severe, including both civil and criminal liabilities, as well as reputational damage for institutions found wanting,” the Commission warned.
The scope of the directive extends beyond traditional financial institutions to include Designated Non-Financial Businesses and Professions, broadening enforcement across multiple sectors of the economy. This expansion underscores a more aggressive and comprehensive approach by regulators to tackle money laundering and terrorism financing.
Market participants have also been advised to strengthen their compliance frameworks by upgrading systems to enable real-time name screening, asset tracking, and prompt reporting. The Commission stressed that such measures are critical to ensuring effective monitoring and rapid response to regulatory directives.
Importantly, operators have been instructed to carry out these actions discreetly, without notifying affected clients in advance, in line with standard procedures for handling sanctions-related enforcement.
The SEC reiterated its zero-tolerance stance on financial crimes, calling on all stakeholders to remain vigilant and proactive in safeguarding the integrity of Nigeria’s financial system.
“It has to be noted that failure to comply not only exposes firms to regulatory sanctions but also risks damaging their credibility in both domestic and international markets,” the Commission added.
The latest move signals a renewed determination by Nigerian authorities to strengthen financial oversight and close loopholes that could be exploited by criminal networks, particularly those linked to terrorism financing.
