FG Mandates Asset Freezes for Terrorism Financiers Following US Sanctions
The Federal Government has issued a directive to all financial institutions and designated non-financial businesses and professions (DNFBPs) to immediately freeze the assets of identified terrorism financiers. This decisive action follows recent sanctions imposed by the United States government on a Nigerian individual and associated Bureaux De Change (BDCs) for alleged links to ISIS.
The US action, executed under Executive Order 13224, targeted Mukhtar Adamu Muhammad, a 35-year-old Lagos-based financier, and three BDCs: Generation Currency Bureau De Change Limited, Nine to Nine Exchange Bureau De Change Limited, and Manhattan Bureau De Change Limited. These entities are accused of facilitating fund transfers for ISIS as part of a broader international effort to disrupt the group’s financial networks spanning Europe, the Middle East, and West Africa.
In response to these developments, the Nigerian Sanctions Committee issued a statement on June 24, 2026, reiterating the government’s commitment to combating terrorism financing. The committee emphasised the imperative for all financial institutions and DNFBPs to “comply fully with all sanctions obligations, including asset-freezing requirements, the filing of Suspicious Transaction Reports and the reporting of relevant matches to the appropriate authorities.”
This directive extends beyond the entities sanctioned by the US. The Federal Government had, prior to the US announcement, on June 18, 2026, added six additional names to its list of individuals and entities subject to sanctions. These include Ibrahim Yakubu Ogirima, Adamu Chiroma, Ibrahim Abubakar, Abdullahi Umar Usman, Babangida Muhammed, Adamu Hammajam, and Abbal Bako & Sons Bureau De Change Limited.
The implications of this directive are significant for legal professionals, compliance officers, and corporate executives. The mandatory asset freezes necessitate a rigorous review of client and counterparty relationships, enhanced due diligence procedures, and robust reporting mechanisms to ensure adherence to anti-money laundering and counter-terrorism financing regulations. Investors and business leaders are also advised to exercise heightened vigilance regarding financial transactions and partnerships to mitigate associated risks.
