SEC freezes assets allegedly linked to six terrorist financiers

The Securities and Exchange Commission has directed capital market operators to immediately freeze the funds, assets, and economic resources of six individuals and three entities designated as terrorist financiers by the Nigeria Sanctions Committee.

The directive, communicated via a circular issued to all Capital Market Regulated Entities on Friday, was implemented in accordance with the provisions of the Terrorism Prevention and Prohibition Act 2022.

The six designated individuals are Babangida Muhammed Adamu Hammajam, Abdullahi Umar Usman, Ibrahim Abubakar, Adamu Chiroma, Muktar Muhammad Adamu, and Yakubu Ogirima Ibrahim.

The three corporate bodies placed on the sanctions list are Nine to Nine BDC Ltd, Generation Currency BDC Ltd, and Abbal Bako & Sons Bureau de Change.

According to the capital market regulator, Hammajam was listed on June 18, 2026, for his involvement in terrorism financing and active support for the Islamic State West Africa Province.

Usman was sanction-listed for providing material assistance to a designated terrorist organisation through repeated financial transactions, while Abubakar was listed for terrorism financing and direct membership of ISWAP.

The commission further revealed that Chiroma allegedly utilised Bureau De Change operations and affiliated corporate entities to move funds linked to terrorist activities.

Similarly, Muktar Adamu was listed on June 15, 2026, for facilitating financial network operations for the ISWAP Okene cell, while Ibrahim provided financial and material support to the ISWAP Kogi cell. The three BDCs were indicted for channelling funds linked to the same Okene financing network.

The action comes amid intensified efforts by Nigerian authorities to disrupt the financial lifelines of insurgent groups operating in the North-East and North-Central regions. Bureau De Change operators have frequently come under regulatory scrutiny by both the SEC and the Central Bank of Nigeria over illegal foreign exchange dealings and money laundering vulnerabilities.

Under the TPPA 2022 and Nigeria’s Sanctions Framework, financial institutions and capital market operators are mandated to act swiftly on sanctions lists issued by the NSC to prevent illicit funds from flowing through the formal financial system.

In its directive, the SEC mandated CMREs to identify and freeze all listed assets without prior notice to the designated individuals or entities. Operators were instructed to submit full compliance reports—including details of frozen assets and any attempted transactions—to the Secretariat of the Nigeria Sanctions Committee.

Additionally, the commission directed all regulated firms to file Suspicious Transaction Reports directly with the Nigerian Financial Intelligence Unit for deep analysis.

“Regulated entities must report as suspicious transactions all cases of name matches in financial transactions, whether occurring before or after the receipt of the sanctions list,” the SEC stated.

The regulator prohibited all forms of business dealings with the sanctioned entities, directing operators to maintain continuous monitoring across all accounts.

Warning of strict consequences, the SEC noted that the circular takes immediate effect, adding that non-compliance constitutes a severe violation of the Investments and Securities Act 2025 as well as the SEC Anti-Money Laundering/Combating the Financing of Terrorism Rules and Regulations.

Defaulting operators risk regulatory sanctions, including heavy financial penalties, operational suspension, or complete revocation of registration licences.