The Nigerian Financial Intelligence Unit (NFIU) has uncovered new methods being used by terrorist financiers to hide the movement of illicit funds, including the use of pre-registered SIM cards and bank accounts opened in other people’s names.
The revelation was contained in the NFIU’s 2025 Annual Report, which highlighted weaknesses in digital identity and financial systems that criminals are exploiting to keep their activities hidden.
According to the agency, some terrorist facilitators use SIM cards that are not registered to the actual owners of bank accounts. These numbers can then be used for mobile banking, transaction alerts and other financial activities, making it difficult for investigators to identify the person actually controlling the money.
The NFIU said criminals have also exploited SIM cards registered to deceased persons, pre-registered SIMs and SIMs linked to other individuals to break the connection between telephone numbers and Bank Verification Numbers (BVNs).
This creates a major challenge for investigators because tracing a suspicious transaction may lead to an innocent or unrelated person instead of the real operator behind the funds.
The agency also identified the use of proxy bank accounts as another growing concern.
In some cases, accounts are reportedly opened in women’s names while male terrorist commanders or logistics operators secretly control them. The NFIU said wives, sisters and female associates may be used as fronts to create distance between the real criminals and the money being moved.
According to the agency, those controlling the accounts may possess the ATM cards, mobile banking details and PINs connected to accounts registered in other people’s names. In some situations, the named account holders may not even know the full extent of the transactions taking place.
The NFIU described the practice as a form of identity laundering because it makes it harder to connect illicit financial activity with the individuals actually directing it.
The agency listed weak customer identification procedures, disconnected SIM-BVN links and limited supervision of some digital financial services among the emerging factors enabling financial crime in Nigeria.
The development comes as Nigerian authorities intensify efforts to strengthen the country’s digital identity and financial security systems.
The National Identity Management Commission (NIMC) said in July 2025 that telecommunications operators had migrated to its NINAuth platform, aimed at improving identity verification and strengthening the security of the digital identity system.
The Central Bank of Nigeria (CBN) has also called on financial institutions to improve their response to electronic fraud, including SIM-swap attacks, social engineering and insider threats. In March 2026, the apex bank introduced additional security requirements for mobile banking and digital payments, including real-time checks of BVN and NIN information for certain account activities.
Meanwhile, the Securities and Exchange Commission (SEC) on August 12, 2026, directed capital market operators to subscribe to the Nigeria Sanctions (NigSac) Alerts system. The system provides information on individuals and organisations designated for terrorism and proliferation financing.
The SEC also instructed regulated entities to freeze funds and economic resources belonging to designated persons and report such actions to the appropriate authorities, including the NFIU.
The latest NFIU findings underline the growing importance of linking mobile identities, bank accounts and national identification records to prevent criminals from hiding behind other people’s identities.
