Nigeria's banks will see increased regulatory attention after the Central Bank of Nigeria raised terrorism-financing supervision to a current supervisory priority. The move shifts more supervisory resources toward compliance checks designed to stop the financial system being used by illicit actors, the central bank said in a press statement signed by Hakama Sidi-Ali, Acting Director of Corporate Communications and Investor Relations.
The statement includes an explicit declaration, "The Central Bank of Nigeria (CBN) has elevated terrorism financing supervision to a current supervisory priority, as part of its ongoing commitment to protecting the Nigerian financial system from abuse by illicit actors." It says the regulator will target several compliance areas for heightened examination, naming terrorism-financing risk management and transaction monitoring, implementation of targeted financial sanctions, and suspicious-transaction reporting linked to terrorism financing.
The CBN said supervision will be risk based and will combine on-site inspections with off-site engagements. It framed the escalation as part of ongoing domestic and international cooperation on counter-terrorism financing, counter-proliferation financing, and financial integrity. The statement added that further supervisory engagement will be undertaken where appropriate, signalling follow-up reviews or enforcement action for institutions that do not meet expectations.
Regulators are linking the escalation to recent targeted measures. The central bank earlier ordered banks, payment service banks and other financial institutions to immediately freeze accounts, assets and transactions connected to six individuals and four Bureau De Change operators designated for terrorism financing. The CBN also amended BVN rules in a March 12, 2026 circular, tightening controls on suspected fraudulent transactions, BVN enrolment and data access to strengthen fraud monitoring and identity management.
Taken together, the announcement ties stepped-up surveillance of terrorism-financing risks to existing moves on fraud controls and identity verification. For regulated firms the practical implication is clear: compliance teams should expect more frequent examinations of transaction-monitoring systems, sanctions implementation and suspicious-transaction reporting, and stricter enforcement where gaps are found.
