Assessment of Terrorism Financing Methods and Their Detection in North East Nigeria

Terrorism financing is the lifeblood of insurgent organisations, and understanding the specific methods used by Boko Haram and ISWAP to finance operations in Nigeria's North East is critical for both counter-terrorism strategy and financial intelligence development. This study assessed the primary terrorism financing methods in North East Nigeria, focusing on Borno, Yobe, and Adamawa States. A qualitative secondary research design was adopted, drawing on systematic review of published intelligence reports, academic analyses, FATF typologies reports, and Nigerian Financial Intelligence Unit bulletins from 2019 to 2024, supplemented by structured interviews with eight counter-terrorism security professionals and three financial crime investigators working in the region. Thematic analysis identified the financing methods and their detection challenges. Results identified five dominant terrorism financing channels: cattle and livestock rustling and sales (cited in 78 percent of reviewed sources), taxation of communities under territorial control (67 percent), international hawala and cryptocurrency transfers (58 percent), kidnapping for ransom proceeds recycling (54 percent), and exploitation of humanitarian aid diversion (47 percent). Detection capacity for cash-based and informal value transfer financing was rated as critically inadequate by all interviewed professionals. The study concludes that terrorism financing in the North East is diversified and largely evades formal financial monitoring. Recommendations include financial intelligence capacity building, FIU-security agency integration, agricultural market transaction monitoring, and cryptocurrency tracking infrastructure development.

Keywords: terrorism financing, Boko Haram, North East Nigeria, counter-terrorism, financial intelligence