The Central Bank of Nigeria (CBN) has intensified its surveillance of banks and other financial institutions over risks associated with terrorism financing, as part of efforts to prevent the financial system from being exploited by illicit actors.
The apex bank said it had elevated terrorism financing supervision to a current supervisory priority, with increased focus on transaction monitoring, suspicious transaction reporting and compliance with targeted financial sanctions.
The CBN disclosed this in a statement issued on Tuesday by the Acting Director, Corporate Communications and Investor Relations Department, Hakama Sidi-Ali.
“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 bank said.
The development signals increased regulatory scrutiny of the systems financial institutions use to identify, monitor and manage transactions that could be linked to terrorism financing.
According to the CBN, its supervisory activities will focus on four key areas: terrorism financing risk management, transaction monitoring, implementation of targeted financial sanctions and the reporting of suspicious transactions linked to terrorism financing.
Banks and other regulated financial institutions are therefore expected to maintain effective systems for detecting unusual transactions and complying with existing anti-money laundering and counter-terrorism financing requirements.
The apex bank said it would continue to adopt a risk-based approach to supervision through both physical examinations and off-site monitoring.
“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 read.
AML/CFT/CPF refers to measures against money laundering, terrorism financing and proliferation financing.
The CBN’s latest focus also includes the implementation of targeted financial sanctions designed to prevent designated individuals and entities from accessing or transferring funds through the formal financial system.
The regulator further highlighted suspicious transaction reporting as a critical part of its supervisory efforts, with financial institutions required to monitor customer activities and report transactions that may indicate financial crime.
The CBN said the heightened supervision formed part of Nigeria’s broader domestic and international efforts to combat terrorism financing and safeguard the integrity of the financial system.
“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 bank stated.
The regulator added that further supervisory engagements would be conducted where necessary.
The latest development follows an earlier CBN directive requiring banks and other financial institutions to freeze the accounts and assets of individuals and companies designated for terrorism and terrorism financing.
The directive was contained in a circular dated June 24, 2026, issued by the CBN’s Compliance Department and addressed to banks, Payment Service Banks and other financial institutions regulated under the Banks and Other Financial Institutions Act 2020.
The action followed sanctions designations by the Nigeria Sanctions Committee and the United States Department of the Treasury’s Office of Foreign Assets Control under Executive Order 13224, as amended, relating to terrorism and terrorism financing.
The latest supervisory measures further underscore the CBN’s efforts to strengthen financial institutions’ controls against the use of Nigeria’s financial system for terrorism financing and other forms of illicit financial activity.
