morGANABLE News/security& justice
Nigeria has long faced security challenges linked to insurgency, banditry, and other forms of organised crime, making financial surveillance a critical tool in national security efforts.
KaNo—
The Central Bank of Nigeria has intensified surveillance across the country’s banking system as part of renewed efforts to curb terrorism financing and safeguard the integrity of the financial sector.
In a statement issued on Tuesday by its Acting Director of Corporate Communications and Investor Relations, Hakama Sidi-Ali, the apex bank said it had elevated terrorism financing supervision to a top regulatory priority.
The move signals a shift toward stricter monitoring of financial institutions, with regulators placing greater emphasis on how banks detect and respond to suspicious financial flows.
“The Central Bank of Nigeria has elevated terrorism financing supervision to a current supervisory priority, as part of its ongoing commitment to protecting the Nigerian financial system from abuse by illicit actors,” the statement read.
The development comes amid growing concerns about the use of formal financial channels to facilitate illegal activities, including the funding of terrorist operations.
Nigeria has long faced security challenges linked to insurgency, banditry, and other forms of organised crime, making financial surveillance a critical tool in national security efforts.
Under the new directive, banks and other regulated financial institutions will be required to strengthen their internal systems for identifying unusual or high-risk transactions.
CBN Outline Key Areas Of Focus
The CBN outlined four key areas of focus: terrorism financing risk management, transaction monitoring, implementation of targeted financial sanctions, and the reporting of suspicious transactions.
Industry analysts say the emphasis on these areas reflects global best practices in anti-money laundering and counter-terrorism financing frameworks.
Financial institutions are expected to deploy advanced monitoring tools capable of flagging irregular transaction patterns, particularly those that may indicate links to terrorism financing networks.
The regulator also reiterated its commitment to a risk-based supervisory framework.
This approach prioritises oversight of institutions, customers, and transactions considered to pose higher risks, rather than applying uniform scrutiny across the entire financial system.
“The bank will continue to apply a risk-based supervisory approach, including on-site and off-site engagement, to support effective AML/CFT/CPF controls across the financial sector in line with existing legal and regulatory obligations,” the statement added.
AML/CFT/CPF refers to anti-money laundering, counter-terrorism financing, and counter-proliferation financing measures, which are central to maintaining financial system stability and compliance with international standards.
Measures Designed To Comply With Existing Regulations
These measures are designed to ensure that institutions comply with existing regulations and promptly report suspicious transactions to relevant authorities.
Targeted financial sanctions also form a critical component of the new supervisory focus.
Such sanctions are typically imposed on individuals and entities identified as being involved in terrorism or related activities, restricting their ability to access or move funds through the financial system.
The directive follows a recent circular issued by the apex bank instructing financial institutions to freeze accounts linked to designated individuals and organisations.
The circular, dated June 24, 2026, was addressed to banks, payment service banks, and other institutions regulated under the Banks and Other Financial Institutions Act 2020.
According to the CBN, the action was in response to updated sanctions lists issued by the Nigeria Sanctions Committee and the United States Department of the Treasury’s Office of Foreign Assets Control under Executive Order 13224, which targets terrorism and its financing.
Experts note that compliance with such sanctions is critical for Nigeria’s standing in the global financial system.
Failure to enforce these measures could expose the country to reputational risks and potential sanctions from international regulatory bodies.
The apex bank stressed that its latest actions align with Nigeria’s broader domestic and international commitments to combating financial crimes.
“This supervisory focus also supports Nigeria’s ongoing domestic and international cooperation on counter-terrorism financing, counter-proliferation financing, financial integrity, and the protection of the financial system,” the statement said.
Macroeconomic Gains Will Soon Benefit Households-CBN
Meanwhile, the CBN has also sought to reassure Nigerians that recent improvements in macroeconomic indicators will eventually translate into tangible benefits for households and businesses.
Speaking at the 19th Annual Banking and Finance Conference organised by the Chartered Institute of Bankers of Nigeria in Abuja, the CBN Governor, Olayemi Cardoso, said the gains from ongoing economic reforms would soon become more evident in everyday life.
Cardoso, who was represented by the Deputy Governor for Economic Policy, Philip Ikeazor, acknowledged that many Nigerians were yet to feel the impact of improved macroeconomic stability.
“I can assure you, all watchers of the economy have acknowledged the macroeconomic stability we have today. But the question that remains on everyone’s mind is, when will the common man feel the full benefits? That is on its way because of this same collaboration that I’m talking about,” Ikeazor said.
He explained that closer coordination between monetary and fiscal authorities was helping to stabilise the economy and lay the groundwork for sustainable growth.
According to him, several fiscal reforms currently underway are expected to complement the CBN’s monetary policies and accelerate economic recovery.
“Some of the reforms being carried out on the fiscal side will begin to manifest very soon. Some of you are aware of things like the National Single Window, different initiatives that are underway, coupled with the macroeconomic reforms, is what will actually deliver those to the common man,” he added.
The CBN official described the level of collaboration between the apex bank and fiscal authorities as unprecedented, noting that it had played a key role in improving key economic indicators such as exchange rate stability and inflation management.
He also credited President Bola Tinubu with creating an enabling environment for the central bank to focus on its core mandate of price and financial system stability.
Representing the President at the conference, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, emphasised that while macroeconomic stability had improved, it should not be mistaken for overall economic prosperity.
“Stability has returned. Credibility is rising. Prosperity is coming,” Tinubu said through his representative. “These improvements matter, but we must not mistake macroeconomic stability for economic prosperity. Stability is the foundation. Prosperity is the destination.”
The assurances come at a time when many Nigerians continue to grapple with high living costs, rising interest rates, and the lingering effects of economic reforms introduced since 2023.
Analysts say that while tighter financial surveillance may not have an immediate visible impact on households, it is essential for long-term economic stability.
By strengthening the financial system against illicit activities, regulators aim to build investor confidence, enhance transparency, and create a more secure environment for economic growth.
As the CBN ramps up its oversight, banks are expected to invest more in compliance systems and staff training to meet the new regulatory expectations.
For customers, the changes may result in stricter verification processes and increased scrutiny of certain transactions.
