By Adekunle Oluwafunmilayo
Nigeria’s Securities and Exchange Commission (SEC) has ordered the immediate freezing of assets belonging to 13 individuals and entities allegedly linked to terrorism financing.
The directive, issued to capital market operators, follows the inclusion of 10 individuals and three entities on the Nigeria Sanctions List by the Nigeria Sanctions Committee.
In a notice titled “Commission’s Sweeping Compliance Directive Issued to Capital Market Operators,” the SEC said the action is backed by provisions of the Terrorism (Prevention and Prohibition) Act 2022, which mandates the freezing of funds, assets, and economic resources associated with designated persons or organisations without prior notice.
The Commission directed all operators and stakeholders in the capital market to fully comply by identifying and freezing accounts linked to the affected parties, halting all related transactions, and reporting such actions promptly to the Nigeria Sanctions Committee Secretariat.
“The directive to freeze accounts and halt all transactions with the flagged entities is binding on all operators,” the SEC stated, adding that any attempted transactions involving the designated individuals or entities must also be reported.
Details accompanying the sanctions indicate that several of the individuals were previously convicted by the Abu Dhabi Federal Court of Appeal in April 2019 for terrorism financing offences linked to Boko Haram. The offences reportedly involved raising funds in Dubai and transferring them to Nigeria to support terrorist activities. Sentences handed down ranged from 10 years’ imprisonment to life terms.
The SEC noted that the case highlights the increasing use of corporate entities as channels for illicit financial flows, underscoring the need for heightened vigilance across the financial system.
According to the Commission, the asset freezing measure is preventive rather than punitive, aimed at disrupting financial networks that support terrorism before funds can be deployed.
It warned that failure to comply with the directive could attract severe sanctions, including civil and criminal liabilities, as well as reputational damage for defaulting institutions.
The directive also extends to Designated Non-Financial Businesses and Professions (DNFBPs), signalling expanded regulatory oversight beyond traditional financial institutions.
Reaffirming its zero-tolerance stance on anti-money laundering and counter-terrorism financing violations, the SEC stressed the importance of real-time monitoring, efficient name screening systems, and prompt reporting by all market operators.
The Commission added that non-compliance could erode investor confidence and undermine the credibility of institutions within both domestic and international markets.
