Financial intelligence agency exposes crowdfunding, proxy accounts and third-party SIMs allegedly used to conceal and move funds for terrorist operations in Nigeria.
The Nigerian Financial Intelligence Unit (NFIU) has uncovered emerging methods allegedly being used to raise, conceal and move money for terrorist activities in Nigeria, including crowdfunding networks, accounts belonging to deceased persons and bank accounts registered in women’s names.
The findings were contained in the NFIU’s 2025 Annual Report, which examined trends in terrorist financing, fraud and other financial crimes during the year.
According to the report, foreign-based facilitators use social media to solicit donations disguised as humanitarian relief or educational support. The funds are reportedly raised through platforms and encrypted messaging applications such as Telegram and Signal before being channelled into bank accounts or online payment platforms.
The NFIU said hundreds of sympathisers could contribute relatively small amounts, typically between $50 and $500, which are later pooled into a master account controlled by a senior member of the network.
The agency said the funds are subsequently broken into smaller transfers and moved through International Money Transfer Operators (IMTOs) and remittance applications to individuals in Nigeria who allegedly serve as money mules.
Students, small-business owners and relatives were among those identified as potential recipients.
According to the NFIU, the recipients could convert the funds to cash or use them to acquire items that could have both legitimate and operational uses, including motorcycles, fertilisers and satellite internet equipment.
Women’s Accounts Used as Proxies
The report also identified the use of bank accounts registered in women’s names as another emerging method of concealing terrorist financing.
The NFIU said male commanders or logistics managers could secretly control accounts opened in the names of wives, sisters or female associates to distance illicit funds from the actual operatives.
The agency said some women may remain unaware of the transactions, while male handlers could have access to ATM cards, mobile banking credentials and PINs associated with the accounts.
Dead Persons’ SIMs and Third-Party Numbers
The financial intelligence agency further identified the use of telephone numbers not registered to the actual account holders or beneficiaries.
It said pre-registered SIM cards, numbers linked to deceased persons and SIMs connected to proxy account holders could be used to obscure the relationship between bank accounts, telephone numbers and Bank Verification Numbers.
According to the NFIU, the practice makes it more difficult for investigators to trace the individuals actually controlling the funds.
ISWAP Transactions Under NFIU Watch
The report also highlighted financial activities linked to terrorist cells, particularly those associated with the Islamic State West Africa Province (ISWAP).
The NFIU said some cells use detailed transaction descriptions as an internal accounting mechanism, with frequent logistics-related payments sent from one source to multiple recipients.
Other facilitators, however, reportedly use coded words, alphanumeric combinations and different languages in transaction narrations to conceal the purpose of transfers and evade automated banking monitoring systems.
Fraud, Public Funds Also Identified as Risks
Beyond terrorist financing, the NFIU described fraud as a major financial crime threat in 2025, citing the growth of Ponzi schemes, fraudulent crowdfunding, cryptocurrency investment scams and hacking-related fraud.
The agency also identified weaknesses in fintech onboarding processes and the use of digital platforms to recruit victims and move illicit funds rapidly.
The report further raised concerns over the diversion of state and local government resources through accounts belonging to finance officers and third parties.
Procurement processes and extensive cash transactions were also identified as areas that could complicate financial tracking and asset tracing.
The NFIU said its findings had been converted into advisories, executive alerts and strategic intelligence products to support law enforcement agencies, financial institutions and policymakers in tackling emerging financial crime threats.