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Nigeria’s apex capital market regulator, the Securities and Exchange Commission (SEC), has directed an immediate freeze on the assets of 13 newly- designated terrorism-linked entities, intensifying efforts to disrupt financial networks tied to insecurity.
The directive, titled: “Commission’s sweeping compliance directive issued to capital market operators,” follows the blacklisting of 10 individuals and three entities recently added to the Nigeria Sanctions List by the Nigeria Sanctions Committee.
Citing provisions of the Terrorism (Prevention and Prohibition) Act, 2022, the Commission said the action mandates the immediate freezing of all funds, assets, and economic resources linked to the affected persons and organisations—without prior notice.
According to the SEC, all Capital Market Operators (CMOs) and stakeholders have been formally notified of the directive, which is backed by Section 49 of the Act. The provision empowers authorities to enforce asset freezes, travel bans, and arms embargoes on designated individuals and entities.
“The directive to freeze accounts and halt all transactions with the flagged entities is binding on all capital market operators and stakeholders,” the Commission stated, stressing strict compliance requirements. These include the immediate identification and freezing of assets linked to designated persons, as well as mandatory reporting of frozen assets and attempted transactions to the sanctions committee secretariat.
Findings accompanying the designation show that several of the affected individuals were convicted by the Abu Dhabi Federal Court of Appeal in April 2019 over terrorism financing linked to Boko Haram. The offences involved the collection of funds in Dubai and their transfer to Nigeria to support terrorist activities, with sentences ranging from 10 years imprisonment to life.
The SEC noted that the development highlights a pattern in which corporate entities are used as conduits for illicit financial flows, underscoring the need for heightened scrutiny across the financial system. It further clarified that the asset-freezing mechanism is preventive rather than punitive, designed to disrupt financial support systems for terrorism before funds are deployed.
“The implications for non-compliance are severe,” the Commission warned, adding that defaulters risk civil and criminal liabilities, alongside reputational damage. The directive also extends beyond traditional financial institutions to Designated Non-Financial Businesses and Professions (DNFBPs), signalling a broader enforcement approach across Nigeria’s financial ecosystem.
The latest move aligns with the SEC’s zero-tolerance stance on anti-money laundering and counter-terrorism financing (AML/CFT) violations, with emphasis on real-time compliance, transaction monitoring, and detailed reporting.
“For market operators, trading systems must be capable of rapid name screening, asset tracing, and reporting, while compliance teams are expected to act without delay or prior notice to affected clients,” the statement added.
The development comes days after LEADERSHIP reported that the Federal Government, through the Nigeria Sanctions Committee, published a list of 48 individuals and organisations allegedly linked to terrorism financing.
Among those listed is Simon Ekpa, who was sentenced by a Finnish court in September 2025 to six years imprisonment for terrorism-related offences, including incitement and participation in the activities of a terrorist group. Also named is Tukur Mamu, currently standing trial over allegations of providing logistical and financial support to terrorist groups, charges he has denied.
The sanctions list also includes organisations such as Indigenous People of Biafra (IPOB), Islamic State West Africa Province (ISWAP), and Ansarul Sudan, among others. Authorities say the coordinated actions form part of ongoing efforts to dismantle financial networks supporting terrorism and enhance the integrity of Nigeria’s financial system.
(LEADERSHIP)
