The Central Bank of Nigeria (CBN) has directed banks and other financial institutions to freeze with immediate effect the accounts and assets of individuals and companies designated for terrorism and terrorism financing, following fresh sanctions issued by Nigerian and United States authorities.
The mandate was contained in a circular dated June 24, 2026, issued by the CBN’s Compliance Department and sent to all banks, Payment Service Banks, and other financial institutions governed by the Banks and Other Financial Institutions Act 2020.
According to the circular, the action is in response to recent sanctions designations on terrorism and terrorism financing issued 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.
“The Nigeria Sanctions List has been updated as at June 18, 2026. These designations constitute binding sanctions measures requiring immediate implementation by all regulated entities,” the apex bank said.
The CBN named six people under the sanctions regime: Muktar Muhammad Adamu, Babangida Muhammed Adamu Hammajam, Abdullahi Umar Usman, Ibrahim Abubakar, Adamu Chiroma, and Yakubu Ogirima Ibrahim.
It also identified four Nigeria-based Bureau de Change operators as being owned or managed by the people.
They include 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 procedures, the apex bank instructed all financial institutions to quickly screen existing customers, beneficial owners, and all incoming and outgoing transactions against the revised sanctions lists, including known aliases and IDs.
It also directed banks to immediately freeze all monies, assets, and other economic resources owned or controlled directly or indirectly by the specified individuals and entities.
The circular stated, “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 percent or more, individually or collectively.”
The CBN also directed financial institutions to ensure that no funds, financial services, or economic resources are made available, directly or indirectly, to the sanctioned persons or entities.
It directed banks to quickly submit suspicious transaction reports to the Nigerian Financial Intelligence Unit for any verified or attempted matches.
The regulator also required all financial institutions to file compliance reports to the CBN within 48 hours of receiving the circular, detailing whether any matches were found, whose accounts were affected, how much money was frozen or restricted, and what steps were taken.
It further stated that institutions with no matching accounts must file required nil returns.
The circular also instructed banks to increase their monitoring of terrorism-financing indications, such as the structuring and rapid movement of funds; the use of money service organizations, bureaux de change, and informal channels; and transactions involving high-risk jurisdictions.
It also directed financial institutions to perform retroactive assessments to identify previous or attempted transactions and client relationships with the identified parties.
The CBN warned against non-compliance, stating that all submissions must be true, comprehensive, and verifiable and that false or misleading information would result in a regulatory breach.
“Any false or misleading information shall constitute a regulatory violation and will attract sanctions under BOFIA 2020 and other applicable laws,” the circular stated.
It further stated that the CBN would conduct off-site evaluations, on-site exams, and supervisory activities to ensure compliance, emphasizing that the decision “takes immediate effect.”
The United States recently identified a Nigerian person and three firms based in the country as alleged financial enablers of activities associated with the terrorist group Islamic State of Iraq and Syria.
They were designated in the most recent action, which targeted three persons and six businesses suspected of enabling the movement of funds for ISIS operations around the world.
