ABUJA, Nigeria — The Securities and Exchange Commission (SEC) has directed capital market operators to immediately freeze the funds, assets, and economic resources of six individuals and three entities identified as terrorist financiers. This directive follows their designation by the Nigeria Sanctions Committee.

The commission issued a circular to all Capital Market Regulated Entities (CMREs) on Friday, implementing the directive under the provisions of the Terrorism Prevention and Prohibition Act 2022. The action aims to disrupt the financial lifelines of insurgent groups operating in Nigeria.

The designated individuals are Babangida Muhammed Adamu Hammajam, Abdullahi Umar Usman, Ibrahim Abubakar, Adamu Chiroma, Muktar Muhammad Adamu, and Yakubu Ogirima Ibrahim. The corporate entities placed on the sanctions list include Nine to Nine BDC Ltd, Generation Currency BDC Ltd, and Abbal Bako & Sons Bureau de Change.

According to the SEC, Hammajam was listed for his alleged involvement in terrorism financing and support for the Islamic State West Africa Province (ISWAP). Usman was sanctioned for providing material assistance to a designated terrorist organisation through financial transactions.

Ibrahim Abubakar was listed for terrorism financing and direct membership of ISWAP. Adamu Chiroma allegedly used Bureau De Change operations and affiliated entities to move funds linked to terrorist activities.

Muktar Muhammad Adamu was designated for facilitating financial network operations for the ISWAP Okene cell. Yakubu Ogirima Ibrahim reportedly provided financial and material support to the ISWAP Kogi cell. The three BDCs were implicated for channelling funds connected to the Okene financing network.

This move comes amid heightened efforts by Nigerian authorities to curb the flow of funds to insurgent groups. Bureau De Change operators have previously faced scrutiny from the SEC and the Central Bank of Nigeria for alleged illegal foreign exchange dealings and money laundering vulnerabilities.

Under the Terrorism Prevention and Prohibition Act 2022 and Nigeria’s Sanctions Framework, financial institutions and capital market operators are obligated to act promptly on sanctions lists from the Nigeria Sanctions Committee. This ensures that illicit funds are prevented from entering the formal financial system.

The SEC mandated CMREs to identify and freeze all listed assets without prior notification to the designated individuals or entities. Operators are required to submit comprehensive compliance reports, detailing frozen assets and any attempted transactions, to the Secretariat of the Nigeria Sanctions Committee.

Furthermore, all regulated firms were directed to file Suspicious Transaction Reports directly with the Nigerian Financial Intelligence Unit for in-depth analysis. The SEC emphasized that any name matches in financial transactions, occurring either before or after receiving the sanctions list, must be reported as suspicious.

The regulator has prohibited all business dealings with the sanctioned entities and instructed operators to maintain continuous monitoring of all accounts. Non-compliance with the directive, which takes immediate effect, is considered a severe violation of the Investments and Securities Act 2025 and the SEC Anti-Money Laundering/Combating the Financing of Terrorism Rules and Regulations.

Operators found to be in default risk severe regulatory sanctions, including substantial financial penalties, operational suspension, or the complete revocation of their registration licenses.