Terrorism Financing: SEC orders freeze of assets of 13 capital market entities, individuals
Lagos, April 2026 – The Nigeria Securities and Exchange Commission (SEC) has ordered the immediate freeze of assets of the 13 individuals and capital market entities linked to terrorism financing.
This follows the blacklisting of 10 individuals and three entities on the Nigeria Sanctions List by the Nigeria Sanctions Committee.
The commission gave the order in a directive tittled ‘Commission’s sweeping compliance directive issued to capital market operators’, issued on Monday.
It said the step was essential after the 10 individuals and three entities were designated and blacklisted on the Nigeria Sanctions List by the Nigeria Sanctions Committee.
The Commission said it anchored its directive on provisions of the Terrorism (Prevention and Prohibition) Act, 2022, which mandates the immediate freezing of all funds, assets, and economic resources linked to the named persons and organisations without prior notice.
SEC said all Capital Market Operators (CMOs) and Stakeholders are hereby notified that pursuant to section 49 of the Terrorism (Prevention and Prohibition) Act, 2022, the Nigeria Sanctions Committee has approved the addition of the entries below to the Nigeria Sanctions List of individuals and entities subject to assets freeze, travel ban and arms embargo.
It said the directive to free accounts and halt all transactions with the flagged entities is binding on all capital market operators and stakeholders, with strict reporting and compliance obligations.
It said that all capital market operators and stakeholders had been notified that, pursuant to section 49 of the Terrorism (Prevention and Prohibition) Act, 2022.
“The directive to free accounts and halt all transactions with the flagged entities is binding on all capital market operators and stakeholders, with strict reporting and compliance obligations, including: immediate identification and freezing of all assets linked to designated individuals and entities without prior notification. Mandatory reporting of frozen assets and attempted transactions to the Nigeria Sanctions Committee Secretariat.”
Details accompanying the designation reveal that several of the individuals were convicted by the Abu Dhabi Federal Court of Appeal in April 2019 for terrorism financing activities linked to Boko Haram.
The offences largely involved the alleged collection of funds in Dubai and transferring them to Nigeria to support terrorist operations.
Sentences ranged from 10 years imprisonment to life sentences, underscoring the severity of the offences.
“This highlights a pattern where corporate vehicles are used as channels for financial flows, reinforcing the need for heightened scrutiny of business entities within the financial system.
“The SEC also emphasized that the asset-freezing mechanism is preventive rather than punitive, designed to disrupt financial support systems for terrorism before funds can be deployed.
“The implications for non-compliance are severe, including both civil and criminal liabilities, as well as reputational damage for institutions found wanting.
“Additionally, the directive extends beyond traditional financial institutions to include Designated Non-Financial Businesses and Professions (DNFBPs), signalling a more comprehensive enforcement approach across Nigeria’s financial ecosystem.”
