SEC Orders Freeze of Assets Linked to Nine Designated Terrorism Financiers

By Nafiu Muhammad Lema

The Securities and Exchange Commission (SEC) has directed operators in Nigeria’s capital market to immediately freeze funds, assets and other economic resources belonging to six individuals and three entities designated as terrorism financiers by the Nigeria Sanctions Committee (NSC).

The directive was contained in a circular issued to all Capital Market Regulated Entities (CMREs), pursuant to the Terrorism Prevention and Prohibition Act (TPPA) 2022.

The individuals listed are Babangida Muhammed Adamu Hamma-jama, Abdullahi Umar Usman, Ibrahim Abubakar, Adamu Chiroma, Muktar Muhammad Adamu and Yakubu Ogirima Ibrahim.

The three entities are Nine to Nine BDC Ltd, Generation Currency BDC Ltd and Abbal Bako & Sons Bureau de Change.

According to the SEC, the designated persons were linked to various forms of alleged terrorism financing and material support for the Islamic State West Africa Province (ISWAP), including financial transactions and activities associated with its networks in Okene and Kogi.

The commission also said the three entities were designated over their alleged role in facilitating and channelling funds connected to the ISWAP Okene financing network.

The SEC directed regulated operators to identify and freeze the affected funds, assets and economic resources without prior notice. They must also report frozen assets, attempted transactions and other compliance measures to the Secretariat of the Nigeria Sanctions Committee.

The commission further ordered CMREs to submit suspicious transaction reports to the Nigerian Financial Intelligence Unit (NFIU) for analysis and to treat name matches involving the designated persons or entities as suspicious, regardless of when the transactions occurred.

Operators are also required to prevent dealings with the listed individuals and entities and maintain continuous monitoring for any related transactions.

The SEC warned that non-compliance with the directive would constitute a violation of the Investments and Securities Act, 2025, as well as its Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) rules.

It said violators could face regulatory sanctions, including fines, suspension of operations or revocation of registration.

The directive takes immediate effect, with the SEC reiterating that all unusual and suspicious transactions must be promptly reported to the NFIU.