Abuja, Nigeria – The Central Bank of Nigeria (CBN) has directed all banks, payment service banks, and other financial institutions to immediately freeze all accounts, assets, and transactions linked to six individuals and four Bureau de Change (BDC) operators designated for terrorism financing.
The directive, contained in a circular dated June 24, 2026, follows an update to the Nigeria Sanctions List that took effect on June 18, 2026, and is binding on all regulated institutions. The action is a coordinated effort with the United States Department of the Treasury's Office of Foreign Assets Control (OFAC) under Executive Order 13224.
The Sanctioned Individuals and Entities
According to the CBN circular, the six individuals added to the Specially Designated Nationals (SDN) and Blocked Persons List are:
· Muktar Muhammad Adamu
· Babangida Muhammed Adamu Hammajam
· Abdullahi Umar Usman
· Ibrahim Abubakar
· Adamu Chiroma
· Yakubu Ogirima Ibrahim
The four Nigeria-based BDC operators designated as owned or controlled by the listed individuals are:
· Generation Currency Bureau De Change Limited
· Manhattan Bureau De Change Limited
· Nine to Nine Exchange Bureau De Change Limited
· Abbal Bako & Sons Bureau De Change Limited
U.S. Sanctions on ISWAP Financier
The CBN's directive follows sanctions imposed by the U.S. government on Mukhtar Muhammad, a Lagos-based BDC operator, and three firms allegedly under his control. OFAC accused Muhammad, also known as Mukhtar Adamu Muhammad, of facilitating financial transactions and money transfers on behalf of the Islamic State West Africa Province (ISWAP), a regional affiliate of the Islamic State terrorist group. The U.S. authorities alleged that the firms were intentionally used to channel funds for the terrorist organization.
CBN Compliance Requirements
The central bank has mandated that financial institutions take the following actions immediately:
· Freeze assets: Identify and immediately freeze, without prior notice, all funds, assets, and economic resources belonging to or controlled by the designated parties, including entities that are 50% or more owned by them.
· Prohibit transactions: Ensure that no funds, financial services, or economic resources are made available to the sanctioned individuals or entities.
· Screen customers: Conduct immediate screening of existing customers, beneficial owners, and all transactions against the updated sanctions lists.
· Report findings: File Suspicious Transaction Reports (STRs) with the Nigerian Financial Intelligence Unit (NFIU) immediately upon identifying a match.
· Submit compliance reports: Provide reports to the CBN within 48 hours detailing affected accounts, amounts frozen, and actions taken—institutions with no matches must file nil returns.
The CBN also directed retrospective reviews of past transactions involving the designated individuals and entities.
Enforcement and Penalties
The apex bank warned that providing false or misleading information would constitute a regulatory breach under the Banks and Other Financial Institutions Act (BOFIA) 2020 and could attract severe sanctions. The CBN said it would monitor compliance through off-site reviews, on-site examinations, and supervisory engagements.
Federal Government's Position
The Nigeria Sanctions Committee welcomed the U.S. action, describing it as a demonstration of coordinated international efforts to disrupt financial networks supporting terrorism. The committee stated that the listing of the individuals and entities followed extensive intelligence gathering and financial investigations, which established reasonable grounds to believe they "facilitated, financed, supported or otherwise contributed to the activities of ISWAP and associated terrorist networks."
"Nigeria remains resolute in its commitment to ensuring that terrorists and their financiers find no safe haven within the country's financial system," the committee said in a statement.
Industry Reaction
Reacting to the development, the President of the Association of Bureau De Change Operators of Nigeria, Aminu Gwadebe, cautioned against generalising the actions of a few operators to the entire industry, stating that the overwhelming majority of licensed BDC operators comply with existing financial regulations and anti-money laundering laws.
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