Security expert Dr. Kabir Adamu has raised an alarm over the increasing use of Nigeria’s formal banking system for processing kidnap ransom payments.
Speaking on Arise News, Adamu, the CEO of Beacon Security and Intelligence Ltd, expressed shock over the growing trend.
He warned that while Nigeria has made strides in financial intelligence, there are operational lapses within the banking sector that are facilitating these criminal activities.
What they are saying
Adamu explained that in the past, kidnappers typically demanded cash payments for ransom. However, there has been a noticeable shift to using mainstream banks for transactions.
- “We’ve monitored kidnapping for ransom cases where the ransom is being collected by formal banks,” Adamu said.
- “My team and I were shocked when the ransom demand was made in a formal bank. It was paid and collected. I don’t want to mention the names of the two banks that were extremely guilty, but even for those two, progress is being made,” he said.
The security expert noted that although fintech platforms had previously been linked to ransom payments, criminals have now shifted their operations to traditional banking channels, raising significant concerns about compliance and oversight in the banking industry.
Adamu emphasized that this shift in tactics underscores the urgent need for stronger accountability measures and compliance standards within Nigeria’s financial institutions. He also pointed out the challenges faced by regulatory bodies in fully addressing the issue, despite recent advancements in financial intelligence efforts.
While acknowledging Nigeria’s recent exit from the Financial Action Task Force (FATF) gray list, Adamu cautioned that operational challenges remain. He commended the Nigeria Financial Intelligence Unit and the Ministry of Justice for successfully meeting the FATF’s stringent requirements, but stressed that operational gaps still exist in effectively enforcing policies.
- “From the point of view of policy, a lot has been done, but from the point of view of operations, there is still a lot that remains to be done,” Adamu stated.
Get up to speed
According to a report by SBM Intelligence, Nigeria’s kidnap-for-ransom crisis generated at least N2.57 billion for criminal groups between July 2024 and June 2025.
The report, titled “The Year Ahead at an Inflexion Point,” highlighted that despite kidnappers’ demands totaling N48 billion during the year, they only received N2.57 billion in actual payments.
- The analysis showed that the value of the ransoms collected in dollar terms remained modest due to the depreciation of the naira, translating to roughly $1.66 million, which is only slightly higher than the $1.13 million recorded in 2022.
- SBM Intelligence also reported 4,722 abductions across 997 incidents, with at least 762 fatalities during the period in question.
Despite the sharp rise in ransom demands, the actual money received by criminals was much less than anticipated, largely due to Nigeria’s currency devaluation.
More insights
In addition to concerns about ransom payments, Adamu highlighted systemic vulnerabilities within the Nigerian banking sector. He pointed out the over-reliance on contract staff, some of whom make up to 70% of the workforce in certain banks, as a critical issue.
- “These contract workers, often outsourced through third-party firms, are poorly compensated and lack comprehensive Know Your Customer (KYC) checks,” Adamu warned.
- “They are in control of systems managing billions of naira, which makes them susceptible to corruption and criminal influence.”
The security expert stressed that while policy reforms are essential, effective enforcement and compliance measures are key to securing Nigeria’s financial system.
- “Policy is good, but in terms of operations and compliance, much more is needed,” he emphasized.
What you should know
In December, the Federal Government designated kidnappers and violent armed groups as terrorists, escalating Nigeria’s response to abductions, attacks on farmers and community violence.
This signals a shift from treating mass kidnappings and rural attacks as ordinary crimes to confronting them with full counterterrorism measures.
Information Minister, Mohammed Idris, said at the time that the new designation gives security agencies broader authority to pursue, disrupt and dismantle criminal groups terrorising communities.
