The Securities and Exchange Commission (SEC) of Nigeria has issued a directive requiring capital market operators to freeze funds associated with six individuals and three bureau de change companies identified by the Sanctions Committee as linked to terrorism financing. This order, released on August 12, mandates immediate action without prior notice, emphasizing the urgency of compliance.

The individuals named in the SEC's directive include Babangida Muhammed Adamu Hammajam, Abdullahi Umar Usman, Ibrahim Abubakar, Adamu Chiroma, Muktar Muhammad Adamu, and Yakubu Ogirima Ibrahim. The implicated firms are Nine to Nine BDC Ltd, Generation Currency BDC Ltd, and Abbal Bako & Sons Bureau de Change. These entities were designated under Nigeria's Terrorism Prevention and Prohibition Act of 2022, following allegations of their involvement in financing the Islamic State West Africa Province (ISWAP).

The SEC's action follows a June 2025 listing by the Sanctions Committee, which accused the individuals of various roles in supporting ISWAP. For instance, Hammajam was designated for allegedly financing and directly supporting the group, while Usman was cited for repeatedly sending funds to ISWAP. Abubakar faces allegations of both financing and being a member of the group, and Chiroma is accused of utilizing bureau de change operations to facilitate financial transactions for ISWAP.

In addition to freezing assets, the SEC has instructed operators to report any suspicious transactions to the Nigerian Financial Intelligence Unit. This includes flagging transactions that match the names on the sanctions list, regardless of when they occurred. Continuous monitoring of dealings related to the named individuals and firms is also mandated, and operators are prohibited from engaging in any business with them.

The SEC has warned that failure to comply with these directives will be considered a violation of the Investments and Securities Act 2025 and could lead to severe penalties, including fines, suspension, or even revocation of licenses. This latest measure is part of Nigeria's broader initiative to combat terrorism financing within its financial system, following a previous round of sanctions affecting ten individuals and three entities.

The SEC's proactive stance comes amid a challenging trading environment for the Nigerian Exchange, which recently experienced a downturn attributed to profit-taking in various sectors, including banking and consumer goods. As the market grapples with these issues, the SEC's actions reflect a commitment to maintaining the integrity of Nigeria's financial landscape against the backdrop of ongoing security challenges.