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]
Fidelity Bank Plc has reaffirmed its commitment to supporting Nigeria’s economic diversification agenda through capacity building and export development, as it hosted the 19th edition of its Export Management Programme (EMP) at the Lagos Business School (LBS), Ajah, Lagos recently.
L-R: Relationship Manager, Fidelity Bank Plc, Murtala Muhammed Road Branch, Kano, Victor Ngwu; Export Management Programme (EMP 19) participant, Abayomi Adewuyi; Facilitator, Gemma Ejiofor; Senior Fellow and Head, Department of Organisational Behaviour and Human Resources Mgt., Lagos Business School (LBS), Dr. Uche Attoh; Director, Export Management Programme, LBS, Prof. Frank Ojadi; and Team Lead, Export & Agriculture, Fidelity Bank Plc, Emmanuel Nwalor, during the closing ceremony of the 19th edition of the Fidelity Bank Export Management Programme (EMP 19) held recently at Lagos Business School, Lagos.
Tagged EMP 19, the programme is an intense hands-on export management workshop, organized as a partnership between Fidelity Bank, Lagos Business School and Nigerian Export Promotion Council, brought together entrepreneurs, professionals, regulators and aspiring exporters for intensive training designed to equip participants with the knowledge, skills and networks required to compete successfully in international markets.
Speaking at the closing ceremony, Divisional Head, Export and Agriculture, Fidelity Bank Plc, Isaiah Ndukwe, said the bank remains focused on empowering Nigerian businesses to leverage emerging opportunities under the African Continental Free Trade Area (AfCFTA) and expand the country’s non-oil export base.
“At Fidelity Bank, we recognize that capacity building is critical to unlocking Nigeria’s export potential. Through the Export Management Programme, we are equipping businesses with practical knowledge, market intelligence and strategic insights required to compete successfully in regional and global markets,” Ndukwe said.
“As AfCFTA continues to open new frontiers for trade across Africa, our goal is to ensure that Nigerian exporters are adequately prepared to seize these opportunities and contribute meaningfully to the country’s economic diversification agenda,” he added.
Nwalor further noted that the bank remains committed to providing exporters with the financial solutions, advisory support and strategic partnerships necessary to expand their businesses beyond Nigeria’s borders.
Also speaking, Director of the Export Management Programme at Lagos Business School, Professor Frank Ojadi, highlighted the need for continuous capacity development as international trade continues to evolve.
“The export market is always evolving. There are changes in policies, improvements in processes and increasing interest from businesses. These developments make it necessary to build the capabilities of our people to compete effectively in export markets,” Ojadi said.
According to him, this year’s programme placed significant emphasis on AfCFTA, exposing participants to both the fundamentals and practical aspects of leveraging the continental trade agreement for business growth.
“Many businesses are still learning how to take advantage of AfCFTA. Through this programme, participants gained practical insights that will help them navigate opportunities across African markets and beyond,” he added.
In his remarks, Senior Fellow and Head of the Department of Organisational Behaviour and Human Resources Management at Lagos Business School, Dr. Uche Attoh, emphasized the importance of negotiation and dispute resolution skills in international trade.
“It is negotiation that enables businesses to establish deals, while arbitration helps resolve disputes when they arise. Once participants understand the principles, they can apply them in any business environment, whether in Africa, Europe or America,” Attoh said.
Participants described the programme as impactful and transformative. Assistant Director at the Nigerian Shippers’ Council, Obinna Oforum, said the training strengthened his resolve to become an “export champion”.
Similarly, Chief Superintendent of Customs, Orji Samuel, praised Fidelity Bank and Lagos Business School for subsidizing the programme and creating an enabling platform for practical learning, noting that the knowledge gained would help participants navigate export challenges and unlock new business opportunities.
The Export Management Programme is Fidelity Bank’s flagship capacity-building initiative aimed at developing export-ready businesses and professionals capable of driving Nigeria’s non-oil export growth. Through strategic partnerships and targeted interventions, the Bank continues to play a leading role in supporting businesses, facilitating trade and creating pathways for sustainable economic development.
Ranked among the best banks in Nigeria, Fidelity Bank Plc is a full-fledged Commercial Deposit Money Bank serving more than 10 million customers through digital banking channels, its 255 business offices in Nigeria and United Kingdom subsidiary, FidBank UK Limited.
The Bank is a recipient of multiple local and international awards, including the 2025 Development Bank of Nigeria (DBN) Innovation Award for MSME support; Best Retail and SME Bank Award from Independent Newspapers; Best Bank for Export & Trade Finance and Most Innovative Bank of the Year at the 2025 BusinessDay Banks and Financial Institutions (BAFI) Awards; and Nigeria’s Best Private Bank at the 2025 Euromoney Awards. The Bank also received the inaugural Most Improved Commercial Bank of the Year award by Nairametrics, the SME Bank of the Year award by NewsDirect, and the Straight-Through Processing (STP) Excellence Award by Citi Group, in addition to recognition by Global Brands Magazine for Excellence in Community Empowerment.
Federal government has engaged the banking community in Abuja to deepen understanding of the Revenue Optimisation Assurance Platform (RevOp), a digital platform designed to improve revenue generation, reduce leakages, and enhance public sector accountability.
Mr Taiwo Oyedele, minister of Finance and coordinating minister of the Economy, told RevOp sensitisation workshop, organised by the Office of the Accountant General of the Federation (OAGF) in Abuja, that RevOp is a centralised digital revenue collection and monitoring system designed to modernise Nigeria’s public finance operations.
Oyedele, who was represented by Mr Mohammed Danjuma, permanent secretary, Special Duties, explained that the platform provides a real-time, automated framework for all federal agencies to raise, collect, and report revenues, replacing fragmented manual processes that have plagued revenue collection for decades.
He reiterated the government’s commitment to improving revenue generation, enhancing transparency, strengthening accountability, and leveraging technology to drive efficiency across public financial management processes.
“RevOp serves as a critical tool in the government’s drive to improve revenue administration, reduce leakages, and enhance public sector accountability,” he said.
According to him, a lot had been achieved since the inception and implementation of the platform and that the successes were not without challenges.
He identified one of the challenges as limited awareness among some banking channels and frontline officers.
The minister explained that some banking channels are not familiar with RevOp, its purpose, or the procedural requirements to support transaction processes through the platform.
“These challenges, though operational in nature, have significant impacts on the overall customer experience and effectiveness of the initiative. This is precisely why we are here today,” he said.
The minister said that the success of RevOp would not be achieved by government alone, adding that it required strong collaboration among all stakeholders, particularly banking institutions, which serve as critical collection and service channels.
He explained that the banking institutions’ role extends beyond merely collecting or processing payments to ensuring that government revenue collection processes are efficient and user-friendly.
“Today’s sensitisation session has, therefore, been organised to deepen understanding of the platform, clarify operational processes, address concerns, and establish stronger communication channels between the project team and participating financial institutions.
“We expect that the knowledge shared here will cascade throughout your respective organisations, especially to branch operations, customer service personnel, and tellers who interact directly with customers on a daily basis,” he said.
Oyedele said the ministry remained committed to working closely with all stakeholders to address identified challenges and continuously improve the platform.
In his speech, Dr. Shamseldeen Ogunjimi, accountant general of the Federation, said that the revenue optimisation portal had been adopted as a strategic platform for improving revenue collection, reconciliation, monitoring, and reporting.
Ogunjimi, represented by Mr Felix Ogundairo, his chief of staff, explained that the platform was designed to provide greater visibility into government revenue, eliminate leakages, improve compliance, and support informed decision-making through real-time data and analytics.
“This engagement, therefore, provides an opportunity for us to discuss implementation challenges, align expectations, clarify operational issues, and strengthen the partnership necessary for the success of the application,” he said.
In his remarks, Mr. Idris Dosunmu, RevOp Product Manager, explained that the platform unifies billing, payment and settlement under one platform and that every transaction passes through secure connections, ensuring complete transparency from bill creation to treasury receipt.
“This will ensure that every penny due to the federal government goes into the coffers of the government,” Dosunmu said.
Federal government has started new efforts to improve tax collection in the Federal Capital Territory (FCT) and stop the problem of multiple taxation.
Mr. Taiwo Oyedele, minister of Finance and coordinating minister of the economy, disclosed this after a meeting with Nyesom Wike, minister, FCT, on Sunday.
According to Oyedele, the meeting focused on strengthening cooperation between the Ministry of Finance and the FCT Administration to support development projects in Abuja.
A major part of the discussion was how to improve tax administration in the territory.
He explained that the proposed tax harmonisation would create a more coordinated tax system, reduce the burden of multiple taxes on residents and businesses, and improve government revenue collection.
Oyedele said the plan is in line with the new tax reform law and is expected to help accelerate development across the FCT.
“The two ministers also reviewed plans to harmonise tax administration within the FCT,” he said.
He added that the initiative would eliminate multiple taxation while ensuring that government revenue is collected more efficiently.
The meeting also examined ways to strengthen collaboration on infrastructure projects across Abuja.
According to Oyedele, discussions centred on supporting the FCT’s ongoing infrastructure renewal programme.
He commended Wike’s approach to development, noting that the minister has focused on completing long-abandoned projects rather than starting new ones.
Oyedele said this strategy is helping to unlock economic and social benefits for residents by bringing stalled public projects back into use.
The proposed tax harmonisation is expected to make tax administration easier for individuals and businesses operating in the FCT while aligning Abuja’s revenue system with the provisions of the new tax reform law.
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