Nigeria’s Securities and Exchange Commission (SEC) has ordered an immediate asset freeze of 13 new alleged terrorism-linked entities across the capital market. This action comes after 10 individuals and three entities were designated and blacklisted on the Nigeria Sanctions List by the Nigeria Sanctions Committee.
The Commission issued a compliance directive to capital market operators early on Monday, April 13, ahead of the market's reopening for the week. The directive is anchored on the provisions of the Terrorism (Prevention and Prohibition) Act, 2022.
This Act mandates the immediate freezing of all funds, assets, and economic resources linked to the named persons and organisations without prior notice. The SEC stated that all Capital Market Operators (CMOs) and Stakeholders are hereby notified that pursuant to section 49 of the Terrorism (Prevention and Prohibition) Act, 2022, the Nigeria Sanctions Committee has approved the addition of the entries below to the Nigeria Sanctions List of individuals and entities subject to assets freeze, travel ban and arms embargo.
The designated individuals include Abdurrahaman Musa Ado, Bashir Ali Yusuf, Ibrahim Ali Alhassan, Muhammad Ibrahim Isah, Salihu Yusuf Adamu, and Surajo Abubakar Mohammad. Others are Fannami Alhaji Bukar, Muhammed Musa, Sahabi Ismail, and Mohammed Saleh Buba.
The three corporate entities listed are Alin Yar Yaya General Enterprises, K. Are Nigeria Limited, and Suhailah Bashir General Enterprises. The directive to freeze accounts and halt all transactions with these flagged entities is binding on all capital market operators and stakeholders.
Strict reporting and compliance obligations include the immediate identification and freezing of all assets linked to designated individuals and entities without prior notification. Operators must also report frozen assets and attempted transactions to the Nigeria Sanctions Committee Secretariat.
Furthermore, Suspicious Transaction Reports (STRs) must be filed with the Nigerian Financial Intelligence Unit (NFIU). All name matches in financial transactions, whether before or after receiving the sanctions list, require reporting. Continuous monitoring and prohibition of dealings with listed persons and entities are also mandated.
The asset freeze broadly applies to assets directly or indirectly owned or controlled by designated persons, including jointly owned assets or those linked through intermediaries, proceeds derived from such assets, and assets held by third parties acting on behalf of designated individuals.
SEC stated that all actions taken pursuant to this publication should be immediately communicated to the Secretariat of the Nigeria Sanctions Committee through [email protected].
Details accompanying the designation reveal that several of the individuals were convicted by the Abu Dhabi Federal Court of Appeal in April 2019 for terrorism financing activities linked to Boko Haram. The offences largely involved collecting funds in Dubai and transferring them to Nigeria to support terrorist operations.
Sentences ranged from 10 years imprisonment to life sentences, underscoring the severity of the offences. The three entities listed are directly linked to promoters already convicted of terrorism-related crimes, highlighting a pattern where corporate vehicles are used as channels for financial flows.
This reinforces the need for heightened scrutiny of business entities within the financial system. The SEC also emphasized that the asset-freezing mechanism is preventive rather than punitive, designed to disrupt financial support systems for terrorism before funds can be deployed.
The implications for non-compliance are severe, including both civil and criminal liabilities, as well as reputational damage for institutions found wanting. The directive extends beyond traditional financial institutions to include Designated Non-Financial Businesses and Professions (DNFBPs), signalling a more comprehensive enforcement approach across Nigeria’s financial ecosystem.
