The Securities and Exchange Commission (SEC) has directed operators in Nigeria’s capital market to immediately identify and freeze funds, assets and other economic resources linked to six individuals and three Bureau de Change (BDC) companies designated over alleged terrorism financing.
The directive was contained in a circular issued by the commission following the designation of the individuals and entities by the Nigeria Sanctions Committee (NSC) and their subsequent inclusion on the Nigeria Sanctions List.
The SEC said the measures were being implemented under Nigeria’s terrorism-financing and targeted financial sanctions framework, with capital market operators required to act without prior notice to the affected persons or entities.
Six individuals named
The individuals listed by the SEC are Babangida Muhammed Adamu Hammajam, Abdullahi Umar Usman, Ibrahim Abubakar, Adamu Chiroma, Muktar Muhammad Adamu and Yakubu Ogirima Ibrahim.
According to the commission, Hammajam was listed on June 18, 2026, over alleged involvement in terrorism financing and support for the Islamic State West Africa Province (ISWAP).
Usman was designated for allegedly providing material support to a terrorist organisation through repeated financial transactions, while Ibrahim Abubakar was listed over alleged terrorism financing and membership of ISWAP.
The SEC said Chiroma was designated over alleged involvement in terrorism financing through the use of BDCs and related corporate entities to facilitate the movement of funds linked to terrorist activities.
Muktar Muhammad Adamu was listed on June 15 over alleged financial support and facilitation of transactions linked to the ISWAP Okene financing network.
Yakubu Ogirima Ibrahim was listed on June 18 over alleged material and financial support to the ISWAP Kogi cell.
The allegations contained in the sanctions listing are designations by the relevant authorities and should not be interpreted as convictions.
Three BDCs also designated
Three BDC companies were also included in the sanctions list: Nine to Nine BDC Ltd, Generation Currency BDC Ltd and Abbal Bako & Sons Bureau de Change.
The SEC said the companies were designated over alleged involvement in facilitating or channelling funds connected to the ISWAP Okene financing network.
SEC orders immediate asset freeze
Following the designations, the SEC directed all capital market-regulated entities to identify and freeze, without prior notice, all funds, assets and other economic resources belonging to or controlled by the designated individuals and entities.
Operators are also required to report frozen assets and the measures taken to comply with the directive to the Secretariat of the Nigeria Sanctions Committee.
Any attempted transaction involving the designated persons or entities must also be reported.
The SEC further directed operators to file suspicious transaction reports with the Nigerian Financial Intelligence Unit (NFIU) whenever a name on the sanctions list matches a person involved in a financial transaction.
Operators ordered to maintain monitoring
The commission instructed capital market operators to prohibit dealings with the designated persons and entities and maintain continuous monitoring of transactions involving them.
The measures are consistent with existing SEC anti-money laundering and counter-terrorism financing obligations. SEC regulations require capital market operators to comply with targeted financial sanctions and maintain systems designed to prevent the market from being used to facilitate criminal activities.
The SEC warned that unusual or suspicious transactions must be reported promptly to the NFIU.
Non-compliance could attract sanctions
The commission said the directive takes immediate effect and warned that failure to comply would constitute a regulatory violation.
Possible sanctions include fines, suspension of operations and revocation of registration, depending on the nature and severity of the breach.
The move places additional compliance obligations on brokers, fund managers, investment advisers, portfolio managers and other regulated capital market participants that may encounter transactions involving the designated persons or entities.
Part of wider financial crackdown
The SEC’s action follows similar measures by other Nigerian financial regulators targeting suspected terrorism-financing networks.
The Central Bank of Nigeria had earlier directed banks and other financial institutions to identify and freeze funds, assets and economic resources belonging to designated individuals and entities linked to terrorism financing.
The coordinated approach reflects a broader effort to prevent Nigeria’s financial system from being exploited to move or conceal funds connected to terrorist organisations.
For the capital market, the latest SEC directive means regulated operators are expected to strengthen screening, transaction monitoring and reporting processes while ensuring that designated assets are not moved or dealt with pending further regulatory action.
The development also underscores the growing role of financial regulators in disrupting terrorism financing by targeting the flow of money rather than focusing only on individuals directly involved in violent activities.
