The Nigeria Financial Intelligence Unit (NFIU) has disclosed alarming findings regarding the use of crowdfunding networks by terrorists to finance their operations. According to the NFIU’s 2025 Annual Report, these networks are being manipulated by terrorist financiers who open bank accounts in the names of women and use unregistered phone numbers for mobile banking, making it difficult for authorities to trace illicit transactions.

The report details how foreign-based facilitators utilize social media platforms to solicit donations under the pretense of humanitarian aid or educational support. This scheme typically involves encouraging numerous sympathizers to contribute small amounts, ranging from $50 to $500, through platforms like PayPal or conventional bank accounts. This method is designed to evade automated anti-money laundering alerts, allowing the funds to be pooled into a central account controlled by a senior member of the terrorist group.

Once a significant amount is accumulated, the funds are fragmented into smaller payments and sent through International Money Transfer Operators (IMTOs) and remittance applications to a network of money mules in Nigeria. The NFIU identified various individuals, including students and small business owners, as unwitting participants in this scheme. Upon receipt, the funds are either converted to cash or used to purchase dual-use items such as motorcycles and satellite internet equipment, or transferred to logistics managers and field operatives.

The NFIU also highlighted the troubling trend of using gender-based proxy accounts, where male operatives control bank accounts registered under women's names. This tactic exploits cultural norms that may lead authorities to overlook suspicious activities associated with female account holders. The report emphasized that these women are often unaware of the transactions being conducted in their names, effectively allowing male commanders to distance themselves from the illicit funds.

In addition, the report revealed that terrorists are employing unregistered telephone numbers for mobile banking alerts, further complicating efforts to trace transactions. By using pre-registered SIM cards or those linked to deceased individuals, they manage to sever the connection between bank accounts and the actual beneficiaries, obscuring the audit trail for investigators.

The NFIU noted that some terrorist cells, particularly those associated with the Islamic State West Africa Province (ISWAP), have developed sophisticated methods for disguising their financial transactions. They often use detailed or coded narrations in their transaction descriptions, which serve as an internal accounting system. This meticulous approach allows them to maintain a structured financial operation while evading detection.

Security experts are urging Nigerian authorities to enhance their operational strategies to combat these emerging threats. Chidi Omeje, a security analyst, emphasized the need for intelligence-driven operations and financial tracking to monitor and disrupt these illicit financial flows. He stated, "Every single day, these guys grow in sophistication and desperation, and we must also devise means to bring them to their knees."

Lawrence Alobi, another security analyst, called for improved intelligence sharing between security agencies and financial institutions to effectively tackle the issue. He stressed the importance of strict compliance and verification procedures within the banking sector to prevent the use of proxy accounts for illicit activities.

The NFIU's findings highlight the increasingly interconnected nature of financial crime and terrorism, underscoring the urgent need for coordinated efforts to safeguard national security and prevent the exploitation of financial systems by criminal elements.