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The NFIU explained that these facilitators deploy carefully crafted messages on platforms such as Facebook, Telegram, and Signal, directing potential donors to seemingly legitimate PayPal pages or conventional bank accounts.
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The Nigeria Financial Intelligence Unit has uncovered a sophisticated and evolving network through which terrorist groups are raising and channeling funds, including the use of crowdfunding platforms, proxy bank accounts, and financial identities linked to deceased persons.
The revelations are contained in the NFIU’s 2025 Annual Report, obtained by Punch News, which details emerging patterns in terrorist financing and highlights how criminal networks are adapting to bypass financial regulations and law enforcement scrutiny.
According to the report, one of the most concerning trends is the use of crowdfunding schemes orchestrated by foreign-based facilitators who exploit social media platforms to solicit donations under false pretenses.
These campaigns are often presented as humanitarian or educational support initiatives, attracting unsuspecting donors from across the world.
The NFIU explained that these facilitators deploy carefully crafted messages on platforms such as Facebook, Telegram, and Signal, directing potential donors to seemingly legitimate PayPal pages or conventional bank accounts.
The donations are typically structured to avoid triggering anti-money laundering systems.
“Hundreds of sympathiser donors contribute between $50 and $500 each, amounts deliberately kept small enough to evade most automated AML alerts,” the report stated.
The agency noted that once sufficient funds are raised, the money is pooled into a central “master account” controlled by a senior member of the network, usually operating legally outside Nigeria. This account serves as the primary hub for further distribution of the funds.
Funds Broken Into Smaller Units For Transfer
From there, the funds are broken into smaller fragments and transferred through International Money Transfer Operators and remittance applications to multiple recipients in Nigeria.
These recipients, often referred to as money mules, include students, small-business owners, and even relatives who may or may not be aware of the full extent of their involvement.
“Rather than sending one large transfer, the senior member fractures the funds into dozens of sub-threshold payments to avoid reporting triggers and obscure the origin and destination of the funds,” the report explained.
These include motorcycles, fertilisers, and satellite internet equipment, all of which have both legitimate and illicit uses. In some cases, the funds are further transferred through mobile banking channels to logistics coordinators and field operatives.
The NFIU described this final stage as the “integration phase,” where the funds are fully absorbed into terrorist operations and used to sustain activities on the ground.
Gender-Based Proxy Accounts Used By Terrorist Financers
In addition to crowdfunding, the report identified the growing use of gender-based proxy accounts as another tactic employed by terrorist financiers.
“Terrorist financiers exploit cultural norms that make women less likely to be suspected by authorities,” the report noted. “They use women’s identities to distance illicit funds from the true operatives.”
The NFIU described this approach as a form of identity laundering, where the women whose names are used may be unaware of the transactions carried out through their accounts.
In many cases, the male operatives retain full control of ATM cards, mobile banking credentials, and personal identification numbers, effectively operating the accounts without detection.
Terrorist facilitators reportedly rely on pre-registered SIM cards, numbers registered to deceased individuals, or SIMs tied to proxy identities to manage mobile banking services and transaction alerts.
By doing so, they are able to sever the connection between bank accounts, SIM cards, and Bank Verification Numbers, thereby complicating efforts by investigators to trace financial activities back to the real perpetrators.
“When a transaction is flagged, investigators may trace the phone number to an unrelated person, allowing the real facilitator to remain anonymous and continue operations,” the report said.
Sophisticated Transaction Narration Used By Terrorists
The agency also uncovered the use of sophisticated transaction narration techniques designed to disguise the true purpose of financial transfers.
In some cases, terrorist cells, particularly those linked to the Islamic State West Africa Province, use detailed and professional-sounding descriptions to maintain what analysts describe as an internal accounting system.
These narrations often reflect structured financial operations, with frequent payments sent from a single source to multiple recipients for logistics-related purposes.
According to the NFIU, this practice enables field commanders to justify expenses to higher authorities within the group, mirroring the financial discipline of formal institutions.
However, the report noted that not all transaction descriptions are transparent. In many instances, facilitators use coded language, innocuous terms, or alphanumeric strings to conceal the intent of transfers.
These codes may also involve switching between languages to evade automated monitoring systems that flag suspicious keywords such as “arms,” “jihad,” or “Boko.”
“This practice obscures the true purpose of transfers, preventing detection and enabling continued financing,” the report stated.
Beyond terrorist financing, the NFIU said its analysis during the year revealed an increasingly interconnected threat landscape involving financial crime, technology, and cross-border activity.
Ponzi Schemes, Hacking Most Dominant Offence
Fraud remains the most dominant underlying offence, with rising cases of Ponzi schemes, cryptocurrency-related scams, and hacking incidents.
The report also pointed to vulnerabilities in fintech systems, particularly those that allow the creation of tiered accounts with minimal identification requirements.
These gaps are increasingly being exploited by criminal networks to recruit participants and move funds rapidly across jurisdictions.
The agency warned that the convergence of digital finance, social media, and global connectivity has made it easier for illicit actors to operate across borders with minimal oversight.
Experts say the findings underscore the need for stronger collaboration between financial institutions, telecommunications companies, and regulatory agencies to enhance monitoring systems and close existing loopholes.
They also emphasised the importance of public awareness, urging individuals to exercise caution when contributing to online fundraising campaigns and to verify the legitimacy of organisations before making donations.
As terrorist groups continue to adapt to evolving financial systems, the NFIU said it remains committed to strengthening intelligence gathering and working with domestic and international partners to disrupt illicit financial flows.
The agency stressed that proactive measures, including improved data integration, stricter enforcement of know-your-customer regulations, and enhanced technological capabilities, would be critical in countering the growing sophistication of terrorist financing networks.
