Taming Terrorism Financing in Nigeria

Ending terrorism financing in Nigeria requires the concerted efforts of the federal government, intelligence agencies and other state actors, writes Ugo Aliogo 

Terrorism financing is a global problem that poses significant threat to security, hinders economic development, and undermines financial market stability.

In Nigeria, terrorism financing is a major issue that is fuelling the activities of insurgency groups such as the Islamic State in West African Province (ISWAP), and Boko Haram Terrorist (BHT).

The United Nations Office on Drugs and Crime (UNODC) in a recent report, revealed that the current pattern of mass abductions of school children, particularly in the northern part of Nigeria, is new and unique in its complexities and attributes as well as in its devastating effects on children, parents and teachers alike.

The UN body stated that girls were disproportionally affected as parents are typically more concerned about their safety while their education is less of a priority.

The report urged the federal government to develop effective, holistic and evidence-based interventions to prevent the emergence of violent extremism.

It stated that there is need to scale up support to community-based and youth crime prevention and enhance resilience to violence and crime.

Meanwhile President Bola Tinubu has accused the global community of complicity in the disturbing rise in illegal mining, illicit financial flow and terrorism funding in Africa.

Tinubu said the international community owed the continent a duty to assist in the fight to eradicate the menace.

Tinubu spoke recently in Abuja, while declaring open a two-day African High-Level Meeting on Counter-terrorism.

He emphasised that it was funds from other continents that fuelled illegal mining and terrorism financing in Africa,

FG’s Commitment

As part of Nigeria’s commitment to tackle insecurity, Tinubu approved the reconstitution of a 15-man National Stakeholders’ Working Group (NSWG) for Nigeria Extractive Industries Transparency Initiative (NEITI).

He emphasised the need for African countries to strengthen regional cooperation and institution-building to address the evolving threat of terrorism on the continent.

He stressed that terrorism posed a big threat to peace, security, and development in Africa.

The president said illegal mining had robbed countries on the continent of the natural resources that ought to have been deployed to meet citizens’ needs.

He asserted that the resources were now being hijacked by terrorist groups in exchange for foreign cash, which is used to buy arms and ammunition. 

According to him, “While we seek to address the root causes of terrorism, we must also attack the roots that feed this evil branch. Evolving from the tactics of yesterday, terrorism is becoming a greater threat as it perfects ways to continuously finance, re-equip and re-supply itself for its sinister mission.

“Not only does it kidnap people; it kidnaps precious resources. Billions upon billions of dollars that legitimate governments should be using to sculpt better societies by providing education, health care and food for its people, now go to pay for weapons and mayhem.

“Look at the illegal mining that plagues so many of our nations today. Those who think illegal mining has no connection with financing terrorism are sorely mistaken.

“The international community has both the moral and legal obligation to help in this cause because it is outside money, not African money, that fuels the illegal operations. We shall be knocking on this door of the international community to answer this call for justice, peace and fair play.”

Tinubu, however, revealed that Africa must strengthen existing counter-terrorism structures, such as the Regional Intelligence Fusion Unit (RIFU) in Abuja, the African Centre for the Study and Research on Terrorism (ACSRT) in Algiers, and the Committee of Intelligence and Security Services of Africa (CISSA) in Addis Ababa.

He underscored the importance of a regional standby force that included tackling terrorism as part of its mandate, declaring, “It must not be abandoned.”

Tinubu said: “I am mindful of the funding, legal, and logistical complexities that face the proper establishment of such a force. However, with a prudent and clearly defined mandate that accords with the international law and respects national sovereignty, such a force can serve as a rapid deployment mechanism, capable of swiftly responding to major threats and bolstering the security of our region.

“Such a force can stand as a strong deterrent to large scale and protracted terrorist operations and the capture, occupation or disruption of strategic land and resources. We must continue to make careful yet meaningful progress toward this goal.”

He added, “Establishing an all-inclusive African Union Ministerial Committee on Counter Terrorism is also a high priority as envisaged in the Declaration of the 16th Extraordinary Summit of the African Union Assembly two years ago in May 2022. This would ensure that a forum of high-level government officials meets regularly to assess our counter-terrorism efforts and provide guidance on how to further improve. Key to our collective efforts against terrorism is the urgent need for a fully operational regional counter-terrorism centre.”

The president also spoke on efforts by Nigeria to beat the menace. He disclosed that the country’s counter-terrorism capabilities had been enhanced through the enactment of the Terrorism Prevention and Prohibition Act, establishing the National Counter Terrorism Centre (NCTC).

He stated: “We have and will continue to take bold steps forward in safeguarding our nation and the wider region. Dedicated to coordinating and implementing counter-terrorism strategies, the NCTC significantly enhances our capacity to detect, prevent, and respond to terrorist threats.

“The centre has become a platform; fostering greater collaboration among stakeholders and promoting synergy in our approach to fighting terrorism.

“Similarly, our security forces continue to demonstrate courage and dedication in the fight against terrorism, often at great personal risk. I am grateful to the selfless work and sacrifice of these patriotic men and women. They are the best of the best.

“I must also mention the ongoing need to halt the proliferation of Small Arms and Light Weapons (SALW) on the continent. No one state can solve this problem for itself. It requires continuous and concerted action by all of us.

“We need to reposition our regional organisations and build the capacity of our national institutions to effectively address this element of terrorism and violent extremism.”

In his welcome remarks at the African High-Level Meeting on Counter-terrorism,

 National Security Adviser (NSA), Nuhu Ribadu, posited that terrorism in Africa was driven by a number of factors, including organised crime, foreign terrorist financing and training, poverty, inequality, and prolonged conflicts, among others.

Ribadu remarked that Nigeria was dealing decisively with all drivers of violent extremism, including economic and social enablers, while enhancing intelligence gathering through enhanced inter-agency collaboration and confidence building with citizens.

He also said Nigeria was strengthening its judiciary to effectively deal with cases of terrorism and had earmarked a fund to boost counter-terrorism efforts.

“We have resumed the prosecution of Boko Haram suspects across the country,” Ribadu disclosed.

Equally speaking, Deputy Secretary-General of the United Nations, Ms. Amina Mohammed, suggested that one of the ways to remove the engenderers of terrorism on the continent was for Africa to work to rebuild its social contract with its citizens, and deliver good governance.

She said, “Rebuilding the social contract is necessary for recovery. We must pay attention to women and girls who are greatly impacted by terrorism, including the youth. Providing support and healing those impacted by terrorism is important to us.”

On his part, Under-Secretary-General of the United Nations Office of Counter-Terrorism (UNOCT), Mr. Vladimir Voronkov, commended Nigeria for its leadership in counter-terrorism in Africa and for hosting the meeting.

According to Voronkov, “Terrorism is a threat to peace and security, particularly in Africa where its impact is mostly felt. The success of UNOCT in Africa hinges on its support for Africa-led programmes and solutions.”

NFIU Viewpoint

Meanwhile, in a recent report, the Nigerian Financial Intelligence Unit (NFIU), stated that terrorism financing is a means through which terrorist groups raise, move and utilise the financial resources needed to fund their activities, such as recruitment of new members, training, payment of stipends to their fighters and acquisition of weapons.

The report posited that the due to factors such as porous borders and proximity to countries with active terrorist groups, Nigeria is exposed to terrorism financing threats emanating from other jurisdictions.

Groups like Boko Haram are known to have received funding internationally from foreign terrorist groups like Al-Qaeda in the Islamic Maghreb (AQIM) and the Islamic State in West Africa Province (ISWAP). In addition, terrorist groups in Nigeria derive their funding from sympathisers, contributions from diaspora members as well as sales of souvenirs and cryptocurrency donations as in the case of IPOB.

 As part of their funds generating move, the group also request for motorcycles and recharge cards from the families of kidnapped victims to aid their movement from one place to another and to recharge their phones to contact their targets respectively.

According to the report, “The prevalent use of motorcycles by terrorists operating in the West African region has highlighted the exposure of the country to TF activities. A study has shown the high rate in which terrorists acquire motorcycles from Nigeria. For instance, a branch of IS Sahel currently based in northern Tillabéri, and one of the borders between Nigeria and Niger, is used for smuggling motorcycles and other goods to armed groups. This indicates the movement of funds by international terrorist groups and the utilization of such funds in Nigeria.”

GIABA’s Report

In another report, the Inter Governmental Action Group against Money Laundering in West Africa (GIABA), stated that Nigeria has shown serious commitment in the fight against terrorism and terrorist financing and as such has domesticated the various United Nations Security Council resolutions for the prevention and suppression of terrorism and terrorist financing and the government has remained resolute in continuing the fight until a total eradication of the terror group is achieved.

It added, “Terrorist financing funds are raised through abuse of legitimate or clean sources like trading, charity organizations, and donations including alms giving. Financing is required not just to fund specific terrorist operations, but to meet the broader organisational costs of developing and maintaining a terrorist organization and to create an enabling environment necessary to sustain their activities.”

The report espoused the use a wide variety of methods to move money within and between their organisation and other terrorist organisations, including; the financial sector, physical movement of cash by couriers and movement of goods through the trade system.

“It has been established that over 80 percent of the funding for terrorists’ attacks take place outside the formal financial system while only about 20 percent or less was routed through the financial sector.A wide array of illegal and criminal activities such as kidnapping extortion, armed robberies, smuggling etc that yields high returns to the sect, “it said.

Both reports acknowledged the following four categories as sources of terrorist financing such as terrorist financing through trade and other lucrative activities, terrorist financing through NGOs, charity organisations, and levies, terrorist financing through smuggling of arms, assets and currencies by cash couriers; and terrorist Financing through drug trafficking.

AFDB Commitment

To tackle the menace, the African Development Bank and the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA), recently launched a three-year support project to combat money laundering and terrorism financing in their member countries.

The project titled: “Capacity Development for Anti-Money Laundering and Countering the Financing of Terrorism in GIABA Member States in Transition,” would be backed by a $5 million grant from the African Development Bank Group.

GIABA said the project will contribute to resilience in the West African region, by improving anti-money laundering/terrorism financing regimes, “and by developing the capacity of GIABA member states, with a particular focus on countries in transition.

“The grant complements the Bank Group’s strategic and operational engagements at country and regional levels. It also aligns with its policy and action plan on the Prevention of Illicit Financial Flows, as well as with the Bank’s group Strategy for Economic Governance in Africa.”