The Central Bank of Nigeria (CBN) has instructed banks, payment service banks, and other financial institutions to immediately freeze all accounts, assets, and transactions associated with six individuals and four Bureau De Change (BDC) operators. These entities have been designated for terrorism financing.

This directive was communicated through a circular dated June 24, 2026 (Ref: CMD/FCS/PUB/CIR/002/011). The CBN emphasized that the latest update to the Nigeria Sanctions List, which became effective on June 18, 2026, is binding on all regulated institutions and requires immediate implementation.

Sanctioned Individuals and Entities

The apex bank informed regulated entities about fresh sanctions issued by the Nigeria Sanctions Committee (NIGSAC) and the United States Department of the Treasury’s Office of Foreign Assets Control (OFAC) under Executive Order 13224, as amended.

The six individuals added to the Specially Designated Nationals (SDN) and Blocked Persons List are Muktar Muhammad Adamu, Babangida Muhammed Adamu Hammajam, Abdullahi Umar Usman, Ibrahim Abubakar, Adamu Chiroma, and Yakubu Ogirima Ibrahim.

Additionally, four Nigeria-based money service businesses and BDCs designated as owned or controlled by the listed individuals are Generation Currency Bureau De Change Limited, Manhattan Bureau De Change Limited, Nine to Nine Exchange Bureau De Change Limited, and Abbal Bako & Sons Bureau De Change Limited.

The CBN explicitly directed financial institutions to “identify and immediately freeze, without prior notice, all funds, assets, and other economic resources belonging to, owned, held, or controlled, directly or indirectly, by the designated persons and entities.” This directive also covers companies or entities that are 50% or more owned, individually or collectively, by the sanctioned persons.

Compliance Requirements and Background

Financial institutions are further instructed to ensure that no funds, financial services, or economic resources are made available, directly or indirectly, to the designated individuals or entities. This action follows recent sanctions imposed by the United States government on Mukhtar Muhammad, a Lagos-based BDC operator, and three firms allegedly under his control.

OFAC accused Muhammad, also known as Mukhtar Adamu Muhammad, of facilitating financial transactions and money transfers on behalf of the Islamic State West Africa Province (ISWAP). OFAC also sanctioned Nine To Nine Exchange Bureau De Change Limited, Generation Currency Bureau De Change Limited, and Manhattan Bureau De Change Limited, alleging their use to channel funds for the terrorist organization.

Authorities have long identified terrorism financing as a critical enabler of terrorist activities. During the administration of former President Muhammadu Buhari, 96 suspects and 424 associates were arrested in connection with terrorism financing investigations, with more than 100 companies and 33 BDC operators reportedly linked to such activities.

Mandatory Actions for Financial Institutions

The CBN has mandated several immediate actions for banks and other financial institutions. These include conducting immediate screening of existing customers, beneficial owners, and all incoming and outgoing transactions against the updated sanctions lists, including known aliases.

Institutions must freeze, without prior notice, all funds and economic resources owned or controlled by designated persons or entities, including those at least 50% owned by them. They must also prohibit any financial services, funds, or economic resources from being made available to the sanctioned parties.

Furthermore, financial institutions are required to submit Suspicious Transaction Reports (STRs) to the Nigerian Financial Intelligence Unit (NFIU) immediately upon identifying a match. They must also strengthen surveillance for terrorism-financing indicators, such as suspicious transaction structuring and the use of money service businesses or BDCs.

A compliance report must be provided to the CBN within 48 hours, detailing affected accounts, amounts frozen, match status, and actions taken. Institutions with no matches are required to submit nil returns and conduct retrospective reviews of past transactions involving the designated individuals and entities.

The CBN warned that providing false or misleading information would constitute a regulatory breach under the Banks and Other Financial Institutions Act (BOFIA) 2020 and could attract sanctions. Compliance will be monitored through off-site reviews, on-site examinations, and supervisory engagements, with the directive taking immediate effect.

This latest action reinforces the CBN’s continued focus on strengthening anti-money laundering and counter-terrorism financing controls across the financial system. It also comes amid the apex bank’s longstanding restrictions on BDC operators’ access to the official foreign exchange market, reflecting concerns over compliance standards and previous abuses within the segment. Market analysts suggest this development further underscores the CBN’s preference for a bank-led foreign exchange distribution framework while tightening oversight of non-bank financial operators.