E-Financial
Preventing Financial Crimes Amid Mounting Insecurity: Why Following the Money is Now a Survival Imperative
By Blaise Udunze
Nigeria today faces a sobering dual reality: a deepening security crisis and an entrenched financial-crime ecosystem that quietly feeds, sustains, and normalises that crisis. Across the North, Middle Belt, and parts of the South, kidnappers, bandits, insurgent cells, political actors, compromised security agents, and a complex chain of financial facilitators operate within a shadow economy of violence, one that generates billions, claims thousands of lives, and steadily erodes the authority of the state.
Financial Crimes
For over a decade, security experts and Nigeria’s international partners have warned that no meaningful progress will be made against insecurity unless the financial oxygen sustaining violence is cut off. Yet the country continues to prosecute its anti-terrorism efforts largely through military responses, as though the conflict could be resolved solely on the battlefield. What remains missing is a decisive, transparent, and politically courageous confrontation with the economic networks that make insecurity profitable.
This war is not only about guns and bullets. It is about money.
Money moves fighters.
Money buys weapons.
Money fuels political desperation.
Money underwrites chaos.
Until Nigeria addresses the financial pipelines behind its insecurity, the crisis will continue to reproduce itself.
Kidnapping: The Lucrative ‘War Fund’ Sustaining Insurgency
The rise in mass kidnappings is neither accidental nor spontaneous. It has evolved into a rational, structured, revenue-generating enterprise.
Appearing on Channels TV’s Politics Today in October 2025, Yusuf Datti Baba-Ahmed warned that insurgent and bandit groups now treat ransom payments as reliable “war funds.” The data support his claim.
A 2024 survey by the National Bureau of Statistics (NBS) found that Nigerians paid N2.2 trillion in ransom between May 2023 and April 2024. This astonishing sum does not account for unreported payments made through informal negotiators, mobile transfers, or unregulated community channels.
Kidnapping has matured into a fully formed economy with well-defined roles: negotiators, informants, logistics providers, cash couriers, and security collaborators. Proceeds are reinvested in weapons, motorcycles, communication devices, safe houses, and even land acquisitions.
In the words of a security analyst, “Every successful kidnapping is a fundraiser.”
Sabotage from Within: Keffi’s Explosive Memo and a System Built to Fail
If Nigeria’s external security threats are troubling, the internal compromises are even more alarming.
A leaked memo by Major General Mohammed Ali Keffi accused senior government and military officials of diverting billions of naira earmarked for arms procurement under former Chief of Army Staff, Lt. Gen. Tukur Buratai. Keffi’s allegations included:
– Weapons paid for but never delivered
– Falsified battlefield reports
– Civilian casualties mislabelled to justify inflated expenditures
– Political interference obstructing investigations into terror financing
His claims echoed the earlier warning by Gen. T.Y. Danjuma, who accused sections of the military of working in concert with armed groups and abandoning vulnerable communities.
Keffi’s memo became even more consequential following the 2025 detention of former Attorney General Abubakar Malami by the EFCC over allegations of money laundering, terrorism financing and suspicious financial activity linked to 46 bank accounts.
Together, these revelations paint a disturbing picture: even as Nigerians endure mass abductions, elements within the political and security elite appear to be enabling or shielding the financial networks behind the violence.
Why the Crisis Persists: A Financial Crime Lens
Nigeria’s insecurity cannot be divorced from the environment in which illicit finance thrives. Key enablers include:
1. Informal Economies and Unregulated Cash Flows
With over 70 percent of rural transactions still cash-based, terror groups exploit:
– Hawala networks
– POS and mobile-money agents
– Cattle markets and mining sites
– Barter systems centred on livestock and grains
These channels operate beyond the reach of AML/CFT systems.
2. Identity Fraud and Weak KYC Enforcement
– Criminal networks routinely open accounts with:
– Fake NINs
– Compromised SIM cards
– Recycled BVNs
– Mule identities
3. Collusion within Financial Institutions
The EFCC estimates that up to 70 percent of financial crimes involve bank personnel, primarily through:
– Unauthorised cash withdrawals
– Suppressed Suspicious Transaction Reports (STRs)
– Manipulated internal alerts
4. Weak Prosecution and Political Interference
Cases drag on for years, and many evaporate entirely before reaching court often due to political considerations.
5. Ungoverned Spaces
Large territories across the North serve as hubs for:
– Arms trafficking
– Illegal mining
– Kidnap-for-ransom camps
– Cross-border smuggling
Public Patience Thins: NLC Moves to the Streets
Public frustration is reaching a boiling point. On December 10, the Nigeria Labour Congress (NLC) announced a nationwide protest scheduled for December 17, citing the “degenerating security situation” and the rise in mass abductions.
The NLC condemned the November 17 abduction of female students in Kebbi, noting that security personnel had been withdrawn from the school shortly before the attack. The union called the act “dastardly and criminal” and directed all affiliates and civil-society partners to fully mobilise for the protest.
This marks a significant shift. For the first time in years, Nigeria’s most influential labour body is placing insecurity at the centre of national mobilization, further underscoring the argument that the current crisis is not simply a security failure but a systemic breakdown of governance, accountability, and financial integrity.
The Financial Engine of Terror: The 23 Suspects Who Moved Billions
A Sahara Reporters investigation uncovered a network of 20 Nigerians and three foreign nationals allegedly linked to the financing of Boko Haram and ISWAP. Their transactions, running into hundreds of billions, were quietly channeled through personal and corporate accounts.
Among those named:
– Alhaji Saidu Ahmed, Zaria businessman: N4.8bn inflows
– Usaini Adamu, Kano trader with 111 accounts: N43bn inflows, N50bn outflows
– Muhammad Sani Adam, forex and precious stones dealer: N54bn across 41 accounts
– Yusuf Ghazali, a forex trader linked to UAE-convicted terrorists, operated 385 accounts
– Ladan Ibrahim, a Sokoto official, is accused of diverting public funds
– Foreign actors included the late Tribert Ayabatwa (N67bn inflows) and Nigerien arms dealer Aboubacar Hima, who moved over $1.19 million.
Strikingly, several of the suspects arrested in 2021 were quietly released without trial, continuing a pattern of impervious investigations and political bottlenecks.
This network confirms a painful truth: Nigeria’s insecurity is not driven solely by men wielding rifles in the bush. It is sustained by individuals in cities, businesses, and bureaucracies, people with access, influence, and remarkable financial mobility.
The Political Dimension: Irabor’s Revelation and the Unnamed Sponsors
The political undertone of Nigeria’s insecurity was reinforced by the former Chief of Defence Staff, Gen. Lucky Irabor (rtd), who admitted that politicians were among those financing terror groups. According to him, some trials were conducted “away from public consumption.”
His statement revived key questions:
– Why is the state shielding the identities of terror sponsors?
– Who benefits from the secrecy?
– What political consequences are being avoided?
Security sources told TruthNigeria that Nigeria’s published list of 19 terror financiers in 2024 represented only a fraction of the full network.
Baba-Ahmed’s accusation that former Kaduna Governor Nasir El-Rufai was part of the political forces that aggravated Northern insecurity, an accusation the former governor has previously denied, adds further urgency to demands for transparency.
The Human Cost: Expanding Killing Fields
Despite repeated assurances, violence continues to spread:
– 303 students and 12 teachers abducted in Niger State
– 38 worshippers kidnapped in Kwara
– Simultaneous raids across Plateau, Kaduna, Benue, and Niger
– Whole communities uprooted by weekly attacks
As Amnesty International observed, “In many rural communities, only the graveyards are expanding.”
SBM Intelligence now describes large portions of the North as “open killing fields,” areas where the state’s influence has collapsed, and community vigilantes have become the default security providers.
Expert Voices: Why Nigeria Must Finally Follow the Money
Security experts converge on a single message: Nigeria cannot defeat terrorism without dismantling its financial infrastructure. Dr. Friday Agbo, a security researcher, disclosed, “Terror groups survive because their financial lifelines remain untouched.”
Jonathan Asake, analyst and former SOKAPU president, said, “Publish the full Dubai list. Without transparency, impunity will remain the norm.”
Gen. Irabor (rtd.) revealed, “There are politicians involved. The conflict is multi-layered: ideology, criminality, and political manipulation.”
These assessments underscore one reality: ideology is secondary. Money is primary. It is the oxygen of Nigeria’s terror landscape.
What Must Change
Nigeria must elevate financial crime to the level of a national-security emergency. Key reforms include:
– Integrating BVN-NIN-SIM identity databases and upgrading real-time monitoring
– Targeting illicit markets: illegal mining hubs, cattle markets, unregulated border posts
– Deploying AI-driven analytics to detect layered transactions, mule networks, and ransom flows
– Strengthening bank compliance units and protecting whistleblowers
– Improving inter-agency intelligence sharing (EFCC, NFIU, DSS, NDLEA, Police, CBN)
– Criminalising unexplained wealth, especially in conflict zones
– Investing in safe-school infrastructure, rural policing, and local reporting channels
Choosing Truth Over Convenience
Nigeria’s two-front war is neither mysterious nor new. It is a well-documented, financially engineered crisis protected by silence, vested interests, and institutional decay. The NLC’s mobilisation signals a turning point; citizens are unwilling to accept official evasions while insecurity intensifies. To end this crisis, Nigeria must:
– Expose and prosecute terror financiers
– Purge corrupt insiders in the security system
– Dismantle ransom economies
– Strengthen financial intelligence
– End political protection for criminal networks
Until these reforms are pursued with integrity, billions will continue to move, weapons will continue to flow, and Nigeria will continue to bleed.
Blaise, a journalist and PR professional, writes from Lagos, can be reached via: [email protected]
E-Financial
Alawuba Advocates Security, Bankable Projects, Infrastructure Development to Promote South-East Vision
Oliver Alawuba, Group Managing Director/Chief Executive Officer, United Bank for Africa (UBA) Plc, has called on leaders and key stakeholders in the South-East to prioritise security and peace, infrastructure development and the delivery of bankable, investment-ready projects.
Oliver Alawuba, Group Managing Director/Chief Executive Officer, United Bank for Africa (UBA) Plc,
This, according to him, is critical if the South Eastern region of the country is to unlock its long-term development agenda under the South-East Vision 2050 (S8V2050).
Alawuba made the call while delivering a goodwill remark at the South-East Vision 2050 Regional Stakeholder Forum which was held at the International Conference Centre, Enugu on Wednesday.
The multi-day forum was convened by the South-East Development Commission (SEDC) in collaboration with the Office of the Vice President, the Ministry of Regional Development and the South-East State Governments, to build consensus around a shared development pathway for the region and advance implementation-ready interventions aligned with national priorities.
Speaking in his capacity as GMD/CEO as well as the Chairman of the Body of Banks’ CEOs and on behalf of Corporate Nigeria, Alawuba identified peace and security as the most urgent requirement for attracting investment into the region, noting that safety remains the first signal investors assess before committing capital.
“The first thing the South-East needs is peace. It is an established fact, world over, that investments flow in the direction of safety,” Alawuba stated, urging state governments and regional leaders to sustain coordinated efforts to secure lives, assets and infrastructure.
He also challenged stakeholders to adopt a results-driven partnership model between government and the private sector; just as he noted that the success of the South-East Vision 2050 will largely depend on the region’s ability to articulate and package clear, measurable and value-adding projects capable of attracting long-term capital.
“Vision alone is not enough. The South-East must present specific, bankable projects with defined impact – projects that can unlock investment, create jobs and deliver real improvements in the lives of our people,” Alawuba stated.
The Forum brought together prominent Nigerians from across government and the private sector, including His Excellency, Senator Kashim Shettima, GCON, Vice President of the Federal Republic of Nigeria, Governors of the South-East States (Imo, Abia, Anambra, Ebonyi and Enugu), Distinguished Senators and Honourable Members of the House of Representatives.
Other key participants included the Honourable Minister of Regional Development, the Chairman, Board Members and Management of SEDC, Royal Fathers and members of the clergy, members of the Diplomatic Corps, captains of industry, and development partners.
The UBA CEO took time to commend the South-East Governors for visible progress in road construction and other critical facilities across the region, while calling for accelerated delivery at scale.
He said, “Infrastructure is the bedrock of development,” he said. “We have seen improvements, but a little bit more is required such as reliable power, motorable roads, rail, water and connectivity to remove the bottlenecks that limit productivity and competitiveness.”
While stressing the importance of creating a truly investor-friendly business environment and unlocking diaspora capital to drive inclusive growth, he added that “Capital will always respond to predictability, ease of doing business and confidence. If we get the fundamentals right, Corporate Nigeria and the banking industry will rally round to finance viable projects, support SMEs, create jobs for our youth and mobilize long-term capital to make South-East Vision 2050 a reality.”
He seized the opportunity to reaffirm UBA’s readiness to partner the SEDC and South-East State Governments, as he noted that the Vision 2050 framework will be strengthened by private-sector participation and long-term capital mobilization to ensure it remains credible and investable.
United Bank for Africa is one of the largest employers in the financial sector on the African continent, with 25,000 employees group-wide and serving over 45 million customers globally. Operating in twenty African countries, the United Kingdom, the United States of America, France and the United Arab Emirates, UBA provides retail, commercial and institutional banking services, leading financial inclusion and implementing cutting-edge technology.
Ecobank Transnational Incorporated has reported a 29 per cent rise in profit after tax to N950.0bn for the financial year ended December 31, 2025, driven by growth in interest income and non-interest revenue.
This was indicated in the Condensed Consolidated Unaudited Financial Statements for the year ended December 2025 filed on the Nigerian Exchange Limited on Friday.
According to the report, the pan-African banking group’s gross earnings rose 14 per cent to N4.82tn, while total revenue increased 18 per cent to N3.67tn.
Profit before tax climbed 30 per cent to N1.28tn, up from N986.7bn in 2024. Operating profit before impairment charges rose 29 per cent to N1.89tn.
In the period under review, net interest income grew 22 per cent year on year to N2.14tn, supported by a 15 per cent increase in interest income to N3.18tn.
Interest expense rose modestly by four per cent to N1.04tn.
Non-interest revenue also strengthened, rising 13 per cent to N1.53tn, buoyed by a 17 per cent increase in fee and commission income to N1.03tn, and a 14 per cent growth in trading income and foreign exchange gains to N559.36bn.
However, other operating income declined 22 per cent to N68.6bn, while net losses on investment securities widened to N10.98bn.
Impairment charges on financial assets rose 28 per cent to N613.26bn, reflecting higher credit risk provisioning during the period.
Despite this, operating profit after impairment increased 30 per cent to N1.28tn.
Total profit stood at N950.0bn, compared to N735.9bn in 2024. Total assets expanded 14 per cent to N49.44tn, up from N43.30tn in 2024.
Loans and advances to customers increased 11 per cent to N17.09tn, while deposits from customers rose 15 per cent to N36.45tn, reinforcing the bank’s funding base. Total equity strengthened significantly, rising 50 per cent to N4.17tn, driven largely by retained earnings growth.
Equity attributable to ordinary shareholders stood at N2.91tn, up from N1.75tn. Total liabilities increased to N45.27tn, from N40.52tn in the previous year.
Ecobank operates in 34 African countries and several international financial centres, serving more than 32 million customers across consumer, commercial, corporate, and investment banking segments.
African fintechs hoping to sign up the continent’s next billion users will need to rethink the industry’s long-running growth playbook, according to Musty Mustapha, Managing Director of Kuda Microfinance Bank, who says cashbacks and incentives may drive downloads but rarely help build sustainable businesses.
Kuda MFB MD
Speaking at a fintech panel discussion on scaling digital financial services across Africa at Tech Revolution Africa, a gathering of tech leaders, investors, operators, and professionals which was held at Landmark Event Center on January 31, 2026, Mustapha objected to what he described as the “growth at all costs” culture which has defined much of African fintech so far. While incentives can quickly inflate user numbers, he said they often fail to create the kind of trust and consistent usage that keeps customers long term.
“It is easy to buy users,” he said. “But if you grow without creating real value, you’re only solving for today’s numbers and ignoring whether the business survives tomorrow.”
His comments come at a time when many startups are under pressure to demonstrate stronger unit economics as venture funding tightens and investors shift attention from rapid acquisition to profitability and retention. In that environment, Mustapha argues that reliability, not marketing spend, will determine which fintechs endure.
Contrary to common assumptions, he said African consumers are not resistant to technology but cautious, shaped by years of unreliable services and weak infrastructure. Products that work seamlessly elsewhere often struggle locally because they fail to account for that trust deficit.
“They’re not digitally naïve,” he said. “They’ve just operated in low-trust environments. If something fails even once or twice, you lose them.”
That focus on trust has influenced how Kuda Microfinance Bank has approached its growth. Launched in 2019 as a digital-first bank, it expanded from roughly 100,000 customers within its first year to nearly 300,000 the next, before surging past 2 million customers in 2021. Today, the microfinance bank serves more than 7 million Nigerians, Mustapha said, describing the journey as less predictable than the numbers suggest.
“The reality is, you can’t forecast scale neatly,” he said. “You can wake up and suddenly have a huge spike in users. If your systems and people aren’t ready, you crumble.”
In his view, the strain on a fintech typically shows up first behind the scenes, not on its app. As volume increases, back-office functions such as reconciliation, chargebacks and customer support can quickly become chokepoints, eroding the trust that fintechs are trying to build. Founders, he said, often underestimate these operational demands in the early days while prioritising product development.
“Anything you don’t pay attention to in your first six months will come back to hurt you at scale,” he said.
External constraints add more complexity. Payment rails, power supply, and connectivity remain outside the control of most fintechs, making outages and delays inevitable. Rather than trying to outspend those limitations, Mustapha said companies must design around them by building redundancies and multiple pathways for critical services.
“You don’t assume perfection,” he said. “If one channel fails, there must be another. That’s how you stay reliable.”
As traditional banks, telcos, and startups increasingly compete for the same mass-market customers, Mustapha expects the winners to combine the strengths of each group — the capital base of banks, the distribution reach of telcos, and the speed of fintechs. But regardless of the model that dominates, he believes the fundamentals will remain the same.
For millions of first-time or underserved users, the deciding factor is simple: whether the service works every time.
“There’s this idea that the average customer can’t use sophisticated products,” he said. “That’s not the issue. What they want is something they can trust.”
As fintech chases its next phase of growth, trust, rather than incentives, may prove to be the sector’s most valuable currency.
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