CBN Headquarters, Abuja

The Central Bank of Nigeria (CBN) has intensified its supervision of banks and other financial institutions to prevent the country’s financial system from being used to finance terrorism and other illicit activities.

In a statement, the CBN Acting Director, Corporate Communications and Investor Relations, Hakama Sidi-Ali, said terrorism financing supervision had become a key priority for the apex bank. She said the regulator would focus on how financial institutions identify and manage terrorism financing risks, monitor suspicious transactions, implement targeted financial sanctions and report transactions linked to terrorism financing.

Sidi-Ali said the CBN would adopt a proactive, risk-based approach, with institutions considered more exposed to terrorism financing risks subjected to closer scrutiny. The bank will also conduct on-site and off-site examinations to assess compliance with anti-money laundering, counter-terrorism financing and counter-proliferation financing requirements.

The move comes as Nigerian authorities intensify efforts to disrupt terrorist financing networks. Recently, the Nigeria Sanctions Committee designated six individuals and three Bureau De Change-related entities as terrorist financiers under the Terrorism Prevention and Prohibition Act 2022. The CBN said its enhanced supervision would complement wider national efforts to disrupt illicit financial flows and protect Nigeria’s financial system from abuse.