The 2026 Annual Nigeria Financial Intelligence Report has raised concerns about the increasing use of crowdfunding platforms and social media by terrorist and extremist groups to generate funds for their operations.
The Nigeria Financial Intelligence Unit (NFIU) reported that facilitators based outside Nigeria were increasingly soliciting donations under the cover of humanitarian or educational causes before routing the money through multiple channels to terrorist operatives in the country.
The report said sympathisers were encouraged to contribute relatively small amounts through online payment platforms and bank accounts. These funds were subsequently pooled and passed through several intermediaries to conceal their origin and intended recipients.
According to the NFIU, the schemes also relied on social media and encrypted messaging platforms to distribute donation requests and payment information.
The agency said the money was eventually moved through money transfer operators and remittance applications to networks of people in Nigeria who allegedly served as money mules.
Students, small business owners and relatives were among those identified as being allegedly used to receive or transfer the funds. The NFIU said the method was intended to make the transactions appear less suspicious and complicate efforts to trace the money.
The report added that the funds could subsequently be converted into cash or used to purchase items with both legitimate and illicit applications before being passed to logistics coordinators and field operatives.
Women’s Accounts Allegedly Used As Fronts
The NFIU also reported that terrorist financiers were using bank accounts registered in women’s names, while male commanders or logistics handlers allegedly retained control over the money.
According to the agency, wives, sisters and female associates were sometimes used as fronts to separate illicit funds from their actual beneficiaries.
The report noted that some account holders might not have been fully aware of the transactions conducted through their accounts.
The NFIU further identified the use of telephone numbers registered to people other than the actual account holders or beneficiaries for mobile banking and transaction notifications.
It said the use of SIM cards associated with other individuals could make it harder for investigators to establish links between bank accounts, telephone numbers and the actual beneficiaries of transactions.
ISWAP Allegedly Uses Coded Transaction Descriptions
The report also stated that terrorist cells, including groups linked to the Islamic State West Africa Province (ISWAP), used transaction descriptions as part of their internal financial management systems.
According to the NFIU, some transactions carried detailed descriptions that enabled field commanders to account for expenditures to financial controllers.
However, the agency said some facilitators also used seemingly innocuous words, codes and alphanumeric combinations to disguise the purpose of transfers and evade automated financial monitoring systems.
The report added that the use of different languages and coded descriptions could make it more difficult to identify potentially suspicious transactions.
Financial Fraud And Scams Also Increasing
Beyond terrorism financing, the NFIU said its analysis revealed a progressively complex financial crime landscape involving technology, fraud and cross border transactions.
The agency pointed to the growing prevalence of Ponzi schemes, fraudulent crowdfunding campaigns, cryptocurrency investment scams and fraud associated with hacking.
It said criminals were increasingly exploiting weaknesses in fintech onboarding procedures and digital platforms to attract victims and transfer illicit funds.
The NFIU also identified the diversion of public funds through accounts belonging to government finance officials and third parties as an ongoing concern.
Procurement procedures were cited as another area susceptible to financial abuse, while the continued reliance on cash transactions was identified as a factor that can make it harder to establish audit trails and trace assets.
The report emphasised the importance of stronger financial monitoring and increased vigilance as criminals continue to adopt digital platforms and alternative channels to conceal and transfer illicit funds.
