KEY POINTS

• CBN has directed banks and financial institutions to immediately freeze all accounts and assets linked to six terrorism financing suspects and four Bureau De Change operators.
• The directive follows an update to Nigeria’s Sanctions List and aligns with sanctions imposed by the U.S. Treasury’s Office of Foreign Assets Control (OFAC).
• Financial institutions must submit compliance reports within 48 hours or face regulatory sanctions under BOFIA 2020.

The Central Bank of Nigeria, CBN, has directed all banks, payment service banks, Bureau De Change (BDC) operators, and other regulated financial institutions to immediately freeze all accounts, assets, and financial transactions linked to six individuals and four Bureau De Change companies over alleged involvement in terrorism financing.

The directive was contained in a circular dated June 24, 2026, with reference number CMD/FCS/PUB/CIR/002/011, following an update to the Nigeria Sanctions List that became effective on June 18, 2026.

According to the apex bank, the sanctions were approved by the Nigeria Sanctions Committee (NIGSAC) and the United States Department of the Treasury’s Office of Foreign Assets Control (OFAC) under Executive Order 13224, as amended, which targets individuals and organisations involved in terrorism and terrorist financing.

Banks barred from processing transactions

The apex bank further directed financial institutions to ensure that no funds, financial services, or economic resources are made available, either directly or indirectly, to any of the sanctioned individuals or organisations.

The directive follows recent sanctions imposed by the United States government on Lagos-based Bureau De Change operator Mukhtar Muhammad and three companies allegedly operating under his control.

According to OFAC, Muhammad, also known as Mukhtar Adamu Muhammad, allegedly facilitated financial transactions and money transfers on behalf of the Islamic State West Africa Province (ISWAP), an affiliate of the Islamic State terrorist group operating in parts of West Africa.

The U.S. agency also sanctioned Nine To Nine Exchange Bureau De Change Limited, Generation Currency Bureau De Change Limited, and Manhattan Bureau De Change Limited, alleging that the firms were used to channel funds to support the terrorist organisation.

The Central Bank directed all affected financial institutions to submit detailed compliance reports within 48 hours of receiving the directive.

The reports must include details of affected accounts, amounts frozen, match status, and actions taken. Institutions that identify no matching accounts are still required to submit nil returns to demonstrate compliance.

The regulator also ordered financial institutions to conduct retrospective reviews of previous transactions involving the designated individuals and entities to identify any earlier financial dealings that may require further investigation.