The Nigerian Financial Intelligence Unit (NFIU) has uncovered an emerging crowdfunding network allegedly being used to raise and move money for terrorist activities in Nigeria, including the use of bank accounts and SIM cards linked to deceased persons.
The financial intelligence agency also identified the use of women’s bank accounts and third-party telephone numbers as methods allegedly employed by terrorist financiers to conceal the movement of illicit funds.
The findings were contained in the NFIU’s 2025 Annual Report, which examined emerging trends in terrorist financing, financial fraud and other forms of financial crime.
Crowdfunding Used to Raise Terrorist Funds
According to the report, foreign-based facilitators operate social media campaigns that disguise fundraising activities as humanitarian relief or educational support.
The facilitators reportedly use encrypted messaging platforms, including Telegram and Signal, to distribute links to payment platforms and conventional bank accounts.
The NFIU said hundreds of sympathisers could be encouraged to make relatively small donations, typically between $50 and $500, allowing the network to accumulate substantial sums while potentially reducing the likelihood of triggering automated anti-money-laundering alerts.
The funds are subsequently consolidated into a central account controlled by a senior member of the network who is legally resident abroad.
When the accumulated funds reach a certain threshold, the account reportedly becomes a hub for onward transfers.
Money Mules Used to Move Funds
The NFIU said the money is then divided into smaller payments and transferred through International Money Transfer Operators (IMTOs) and remittance applications to a network of potential money mules in Nigeria.
Students, small-business owners and relatives were among the categories of people identified as possible recipients.
The agency said the fragmentation of payments could make it more difficult for financial institutions and investigators to identify the source and ultimate destination of the funds.
Recipients could then convert the money into cash or use it to purchase items with both legitimate and potential operational uses, including motorcycles, fertilisers and satellite internet equipment.
The funds could subsequently be transferred through mobile banking channels to individuals responsible for logistics and field operations.
Women’s Accounts Used as Proxies
The NFIU also identified the use of gender-based proxy accounts as an emerging terrorist-financing technique.
According to the report, accounts may be opened in women’s names while male commanders or logistics personnel secretly control the accounts.
The agency said wives, sisters and female associates could be used as fronts to distance illicit funds from the individuals actually controlling the transactions.
In some cases, the women may allegedly be unaware of the nature or volume of transactions conducted through their accounts.
Third-Party SIMs Create Audit Challenges
The agency further warned about the use of telephone numbers that are not registered to the actual owners of bank accounts or beneficiaries.
According to the NFIU, facilitators may use pre-registered SIM cards, numbers registered to deceased persons or SIMs connected to proxy account holders.
Such practices can make it more difficult for investigators to establish the relationship between SIM cards, bank accounts and Bank Verification Numbers (BVNs).
The agency said the practice could allow the actual facilitators to remain hidden when suspicious transactions are investigated.
ISWAP Financial Transactions Under Scrutiny
The NFIU also highlighted financial practices it associated with terrorist cells, including those linked to Islamic State West Africa Province (ISWAP).
The agency said some cells use detailed transaction descriptions as an internal accounting mechanism, with logistics-related payments sent from central sources to multiple recipients.
In other cases, however, facilitators reportedly use coded descriptions, innocuous terms and alphanumeric combinations to disguise the purpose of transactions.
The NFIU said some facilitators may also switch between languages to make it harder for automated banking systems to detect suspicious terminology.
Financial Crime Extends Beyond Terrorism
The NFIU report also identified a broader and increasingly interconnected financial crime environment involving technology, fraud and cross-border transactions.
Fraud and investment scams were highlighted as major predicate offences, with concerns over Ponzi schemes, fraudulent crowdfunding operations, cryptocurrency-related investment scams and hacking-related fraud.
The agency said criminals were increasingly exploiting weaknesses in fintech onboarding systems and using digital platforms to recruit victims and move funds rapidly.
The report also raised concerns over the management of public funds, citing risks involving the diversion of state and local government resources through accounts belonging to finance officers and third parties.
Procurement processes were also identified as a significant risk area, while extensive cash transactions were said to make financial trails and asset recovery more difficult.
NFIU Strengthens Financial Intelligence
The NFIU said its analysis had been converted into targeted advisories, executive alerts and strategic intelligence products to support competent authorities, financial institutions and policymakers.
The agency’s findings highlight the growing sophistication of financial networks used by criminal and terrorist groups and the increasing role of digital platforms, mobile banking, remittance services and proxy identities.
Authorities face the challenge of strengthening financial monitoring systems while ensuring that legitimate charitable fundraising, remittances and digital financial services are not unfairly disrupted.
