The Central Bank of Nigeria (CBN) has directed banks, payment service banks, and other financial institutions to immediately freeze all accounts, assets, and transactions linked to six individuals and four Bureau De Change (BDC) operators designated for terrorism financing.

The directive was contained in a circular dated June 24, 2026 (Ref: CMD/FCS/PUB/CIR/002/011), obtained by Nairametrics.

According to the apex bank, the latest update to the Nigeria Sanctions List, effective June 18, 2026, is binding on all regulated institutions and requires immediate implementation.

What they are saying

In the circular, the CBN informed regulated entities of fresh sanctions issued by the Nigeria Sanctions Committee (NIGSAC) and the United States Department of the Treasury’s Office of Foreign Assets Control (OFAC) under Executive Order 13224, as amended.

Other News

The six individuals added to the Specially Designated Nationals (SDN) and Blocked Persons List are:

  • Muktar Muhammad Adamu
  • Babangida Muhammed Adamu Hammajam
  • Abdullahi Umar Usman
  • Ibrahim Abubakar
  • Adamu Chiroma
  • Yakubu Ogirima Ibrahim

The four Nigeria-based money service businesses and BDCs designated as owned or controlled by the listed individuals are:

  • Generation Currency Bureau De Change Limited
  • Manhattan Bureau De Change Limited
  • Nine to Nine Exchange Bureau De Change Limited
  • Abbal Bako & Sons Bureau De Change Limited

The CBN directed financial institutions to “identify and immediately freeze, without prior notice, all funds, assets, and other economic resources belonging to, owned, held, or controlled, directly or indirectly, by the designated persons and entities.”

The directive also extends to companies or entities that are 50% or more owned, individually or collectively, by the sanctioned persons.

Financial institutions were further instructed to ensure that no funds, financial services, or economic resources are made available, directly or indirectly, to the designated individuals or entities.

Get up to speed

The directive follows recent sanctions imposed by the United States government on Mukhtar Muhammad, a Lagos-based BDC operator, and three firms allegedly under his control.

  • In a statement released earlier this week, OFAC accused Muhammad, also known as Mukhtar Adamu Muhammad, of facilitating financial transactions and money transfers on behalf of the Islamic State West Africa Province (ISWAP), the West African affiliate of the Islamic State terrorist group.
  • OFAC also sanctioned Nine To Nine Exchange Bureau De Change Limited, Generation Currency Bureau De Change Limited, and Manhattan Bureau De Change Limited, alleging that the firms were used to channel funds for the terrorist organisation.

Authorities have long identified terrorism financing as a critical enabler of terrorist activities. Over the years, several BDC operators and their associates have come under investigation for alleged links to terror financing.

During the administration of former President Muhammadu Buhari, authorities arrested 96 suspects and 424 associates in connection with terrorism financing investigations. More than 100 companies and 33 BDC operators were also reportedly linked to terror-financing activities.

More insights

The CBN directed banks and other financial institutions to take the following actions immediately:

  • Screen and identify: Conduct immediate screening of existing customers, beneficial owners, and all incoming and outgoing transactions against the updated sanctions lists, including known aliases.
  • Freeze assets: Freeze, without prior notice, all funds and economic resources owned or controlled by designated persons or entities, including entities that are at least 50% owned by them.
  • Prohibit transactions: Ensure that no financial services, funds, or economic resources are made available to the sanctioned parties.
  • Report findings: Submit Suspicious Transaction Reports (STRs) to the Nigerian Financial Intelligence Unit (NFIU) immediately upon identifying a match.
  • Enhanced monitoring: Strengthen surveillance for terrorism-financing indicators, including suspicious transaction structuring and the use of money service businesses or BDCs.

Provide a compliance report to the CBN within 48 hours, detailing affected accounts, amounts frozen, match status, and actions taken.

Institutions with no matches are required to submit nil returns.

They are also expected to conduct retrospective reviews of past transactions involving the designated individuals and entities.

The CBN warned that providing false or misleading information would constitute a regulatory breach under the Banks and Other Financial Institutions Act (BOFIA) 2020 and could attract sanctions.

The regulator added that compliance would be monitored through off-site reviews, on-site examinations, and supervisory engagements, with the directive taking immediate effect.

What you should know

The latest action reinforces the CBN’s continued focus on strengthening anti-money laundering and counter-terrorism financing controls across the financial system.

It also comes amid the apex bank’s longstanding restrictions on BDC operators’ access to the official foreign exchange market, reflecting concerns over compliance standards and previous abuses within the segment.

Market analysts say the development further underscores the CBN’s preference for a bank-led foreign exchange distribution framework while tightening oversight of non-bank financial operators.