- NFIU uncovered a crowdfunding network allegedly financing terrorist operations in Nigeria
- Terrorist financiers reportedly use proxy accounts, mobile banking and money mules to conceal funds
- Security experts urged stronger financial monitoring and intelligence sharing to disrupt illicit funding
The Nigeria Financial Intelligence Unit has uncovered a sophisticated crowdfunding network allegedly being used to raise and transfer money to terrorist groups operating in Nigeria.
Eko Hot Blog gathered the disclosure was contained in the NFIU’s 2025 Annual Report, which detailed emerging methods being used by terrorist financiers to disguise the movement of illicit funds.
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According to the report, foreign-based facilitators use social media platforms to solicit donations under the guise of humanitarian assistance and educational support. The money is subsequently moved through several accounts and financial channels before reaching individuals linked to terrorist operations in Nigeria.
The NFIU said donors are often encouraged to contribute relatively small amounts, typically between $50 and $500, through PayPal and conventional bank accounts. By keeping individual donations below common reporting thresholds, the organisers allegedly reduce the likelihood of triggering automated anti-money laundering alerts.
The funds are later consolidated in a central account controlled by a senior member of the network based outside Nigeria. Once the accumulated funds reach a certain level, they are divided into smaller transactions and transferred through international money transfer operators and remittance applications to money mules in Nigeria.
The financial intelligence agency identified students, small-business owners and relatives among those allegedly used to receive the funds.
After receiving the money, the mules may convert it to cash, purchase items that can serve both civilian and operational purposes, or transfer the funds through mobile banking channels to individuals responsible for logistics and field operations.
The NFIU described the process as the final stage in integrating illicit funds into terrorist financing activities.
The agency also identified the use of women’s bank accounts as proxy accounts as another emerging technique.
According to the report, terrorist financiers sometimes open accounts in the names of wives, sisters or other female associates while male commanders or logistics officers secretly control the accounts.
The arrangement, the NFIU said, exploits social perceptions that women may attract less suspicion during financial investigations.
In some cases, women whose names are attached to the accounts may not even be aware of the volume or nature of the transactions being conducted.
The report further revealed that criminal networks were using telephone numbers that were not registered to the actual bank account holders or beneficiaries for mobile banking and transaction alerts.
The NFIU said pre-registered SIM cards, numbers previously registered to deceased persons and SIMs connected to proxy account holders were among the methods used to obscure the identities of those controlling the accounts.
The agency said the practice makes it more difficult for investigators to establish a direct connection between bank accounts, telephone numbers and Bank Verification Numbers.
Terrorist groups were also found to be disguising financial transactions through coded or seemingly harmless descriptions.
The NFIU said some cells, particularly those linked to the Islamic State West Africa Province, use detailed transaction descriptions as part of an internal financial management system.
In other cases, facilitators reportedly use innocuous terms, codes, alphanumeric combinations and different languages to conceal the real purpose of transactions and avoid automated banking systems designed to flag suspicious words.
The NFIU said its analysis showed that financial crime, technology and cross-border activities were becoming increasingly interconnected.
It identified fraud as a major underlying offence, with growing cases involving Ponzi schemes, fraudulent crowdfunding operations, cryptocurrency investment scams and hacking-related fraud.
The agency also warned that criminals were exploiting weaknesses in fintech customer onboarding systems, particularly accounts requiring limited identification, to recruit victims and move money quickly.
Beyond terrorism financing, the NFIU highlighted weaknesses in the management of public funds, including alleged diversion of state and local government resources through accounts belonging to finance officials and third parties.
It identified procurement activities and cash transactions as major areas of concern because they can make it harder to establish clear audit trails and trace illicit assets.
The agency said information gathered from its analysis had been used to produce intelligence reports, advisories and alerts for relevant authorities and financial institutions.
Reacting to the findings, security expert Chidi Omeje urged Nigerian security and financial intelligence agencies to strengthen their strategies against increasingly sophisticated criminal networks.
Omeje called on the Nigeria Police Force, Department of State Services and financial regulators to intensify efforts to track suspicious financial movements and follow the money trail.
He said criminal groups were constantly developing new methods to bypass existing security systems, making financial intelligence increasingly important in combating terrorism and organised crime.
Another security analyst, Lawrence Alobi, urged security agencies to improve intelligence sharing and strengthen cooperation with financial institutions.
Alobi said banks must ensure strict identity verification and prevent their platforms from being exploited through proxy accounts.
He also called for sanctions against financial institutions found to have deliberately facilitated or ignored suspicious transactions.
He stressed that security agencies and banks must work together to close loopholes that allow criminals to conceal their identities and move funds undetected.
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