Terrorism Financing and National Security in Nigeria: An Assessment of Regulatory Frameworks (2020-2024)

This study assesses Nigeria's regulatory frameworks for combating terrorism financing and their effectiveness in securing the country against terrorist threats between 2020 and 2024. Terrorism financing has been identified by the Financial Action Task Force as a critical vulnerability in Nigeria's national security architecture, enabling insurgent and criminal organisations to sustain operations. The study is anchored on the Critical Security Studies framework, particularly Barry Buzan's reformulation of security as a multidimensional concept encompassing military, political, economic, and societal dimensions. A documentary and qualitative research design was employed, drawing on analysis of the Terrorism Prevention and Prohibition Act 2022, the Money Laundering Prevention and Prohibition Act 2022, Central Bank of Nigeria circulars, and reports of the Nigerian Financial Intelligence Unit. Eight key informants from financial regulatory agencies, law enforcement, and civil society were also interviewed. Findings reveal that while Nigeria's legislative framework for countering terrorism financing has been substantially modernised since 2022, implementation gaps remain significant. The study identifies weak enforcement capacity in financial institutions, underreporting of suspicious transactions, and inadequate inter-agency coordination as primary implementation deficits. It further finds that informal financial channels including hawala and mobile money platforms remain under-regulated. It is concluded that legal reform alone is insufficient to counter terrorism financing without commensurate institutional capacity building. The study recommends mandatory anti-money laundering training for financial institutions, enhanced inter-agency data sharing, and strengthened mobile money regulation.

Keywords: Terrorism financing, national security, regulatory frameworks, Nigeria, financial intelligence