The Securities and Exchange Commission (SEC) has ordered capital market operators in Nigeria to immediately freeze the funds, assets and economic resources of six individuals and three companies designated by the Nigeria Sanctions Committee as terrorist financiers.
The directive was contained in a circular issued to all Capital Market Regulated Entities (CMREs) on Friday, in line with the provisions of the Terrorism Prevention and Prohibition Act 2022 and Nigeria’s sanctions framework.
The individuals named on the sanctions list are Babangida Muhammed Adamu Hammajam, Abdullahi Umar Usman, Ibrahim Abubakar, Adamu Chiroma, Muktar Muhammad Adamu and Yakubu Ogirima Ibrahim.
The three entities affected by the directive are Nine to Nine BDC Ltd, Generation Currency BDC Ltd and Abbal Bako & Sons Bureau de Change.
According to the SEC, Hammajam was designated on June 18, 2026, over allegations of terrorism financing and active support for the Islamic State West Africa Province (ISWAP).
Usman was sanctioned for allegedly providing material support to a designated terrorist organisation through repeated financial transactions, while Abubakar was designated over alleged terrorism financing and direct membership of ISWAP.
The commission also alleged that Chiroma used Bureau De Change operations and related corporate entities to facilitate the movement of funds associated with terrorist activities.
Muktar Adamu was reportedly designated on June 15, 2026, for allegedly facilitating financial network operations connected to the ISWAP Okene cell. Ibrahim, meanwhile, was listed for allegedly providing financial and material support to the ISWAP Kogi cell.
The three BDC companies were also designated over allegations that they channelled funds linked to the same Okene financing network.
The latest action forms part of broader efforts by Nigerian authorities to disrupt the financial networks supporting insurgent groups, particularly those operating across the North-East and North-Central regions.
BDC operators have remained under increased regulatory scrutiny because of concerns surrounding illicit foreign exchange transactions, money laundering and the potential use of financial channels to move funds connected to criminal and terrorist activities.
Under the Terrorism Prevention and Prohibition Act 2022 and Nigeria’s sanctions regime, financial institutions and capital market operators are required to implement sanctions without delay when designated persons or entities are identified.
The SEC directed regulated firms to identify and freeze all assets belonging to the listed individuals and entities without prior notification. Operators must also submit detailed compliance reports to the Secretariat of the Nigeria Sanctions Committee, including information on frozen assets and attempted transactions involving the designated parties.
In addition, regulated entities were instructed to file Suspicious Transaction Reports with the Nigerian Financial Intelligence Unit for further analysis.
The SEC emphasised that transactions involving names matching those on the sanctions list must be reported as suspicious, regardless of whether the transactions occurred before or after the sanctions list was received.
The commission also prohibited regulated entities from engaging in any form of business relationship with the designated individuals and companies and ordered firms to maintain continuous monitoring of their accounts and transactions.
The SEC warned that the directive takes immediate effect and that failure to comply would constitute a serious regulatory breach under the Investments and Securities Act 2025 and the SEC’s Anti-Money Laundering and Combating the Financing of Terrorism Rules and Regulations.
Operators that fail to comply could face severe regulatory measures, including substantial financial penalties, suspension of operations and revocation of their registration licences.
The directive underscores the increasing role of Nigeria’s financial regulators in preventing the country’s formal financial system from being exploited to fund terrorism and other illicit activities.