The Central Bank of Nigeria has directed banks and other financial institutions to immediately freeze the accounts and assets of individuals and companies designated for terrorism and terrorism financing, following fresh sanctions imposed by Nigerian and United States authorities.
The directive was contained in a circular dated June 24, 2026, issued by the CBN’s Compliance Department and addressed to banks, Payment Service Banks, and other financial institutions regulated under the Banks and Other Financial Institutions Act 2020.
According to the apex bank, the action follows recent sanctions designations by the Nigeria Sanctions Committee and the United States Department of the Treasury’s Office of Foreign Assets Control under Executive Order 13224, as amended, targeting individuals and entities linked to terrorism financing.
“The Nigeria Sanctions List has been updated as of June 18, 2026. These designations constitute binding sanctions measures requiring immediate implementation by all regulated entities,” the CBN stated.
The sanctions list includes six individuals: Muktar Muhammad Adamu, Babangida Muhammed Adamu Hammajam, Abdullahi Umar Usman, Ibrahim Abubakar, Adamu Chiroma, and Yakubu Ogirima Ibrahim.
The CBN also named four Bureau de Change operators allegedly owned or controlled by the designated individuals. They are Generation Currency Bureau de Change Limited, Manhattan Bureau de Change Limited, Nine to Nine Exchange Bureau de Change Limited, and Abbal Bako & Sons Bureau de Change Limited.
As part of the compliance measures, the regulator directed all financial institutions to immediately screen existing customers, beneficial owners, and all incoming and outgoing transactions against the updated sanctions lists, including known aliases and identifiers.
Banks were further instructed to freeze, without prior notice, all funds, assets, and economic resources belonging to or controlled directly or indirectly by the designated persons and entities.
“Identify and immediately freeze, without prior notice, all funds, assets, and other economic resources belonging to, owned, held, or controlled directly or indirectly by the designated persons and entities, including those owned 50 per cent or more, individually or collectively,” the circular stated.
The apex bank also prohibited financial institutions from making funds, financial services, or economic resources available, directly or indirectly, to any of the sanctioned individuals or organisations.
In addition, banks were directed to file Suspicious Transaction Reports with the Nigerian Financial Intelligence Unit for any confirmed or attempted matches and submit detailed compliance reports to the CBN within 48 hours.
The reports are expected to indicate whether any matches were identified, the accounts affected, amounts frozen or restricted, and actions taken. Institutions with no matching accounts are required to submit mandatory nil returns.
The CBN further instructed financial institutions to strengthen monitoring for terrorism-financing indicators, including suspicious fund movements, the use of money service businesses, bureaux de change, informal transfer channels, and transactions involving high-risk jurisdictions.
The regulator also ordered retrospective reviews of previous transactions and customer relationships linked to the designated individuals and entities.
Warning against non-compliance, the CBN stressed that all submissions must be accurate, complete, and verifiable.
“Any false or misleading information shall constitute a regulatory violation and will attract sanctions under BOFIA 2020 and other applicable laws,” the circular warned.
The apex bank added that it would conduct off-site reviews, on-site examinations, and supervisory engagements to ensure full compliance, noting that the directive takes immediate effect.
The development comes after the United States designated a Nigerian national and three Nigeria-based companies as alleged financial facilitators for the terrorist group Islamic State of Iraq and Syria.
The latest sanctions targeted three individuals and six entities accused of facilitating the movement of funds for ISIS operations across different parts of the world.
Meanwhile, the Association of Bureaux De Change Operators of Nigeria has expressed support for both domestic and international efforts aimed at combating terrorism financing and safeguarding the integrity of Nigeria’s financial system.
