North East: EFCC, ICPC, CSOs seek end to terrorism financing, violent extremism

The Economic and Financial Crimes Commission (EFCC) and leaders of coalition of Civil Society Organizations (CSOs) operating in Nigeria unanimously underscored the need to strengthen ongoing war against terrorism financing and violent extremism in the North East region of Nigeria.

The stakeholders’ positions were highlighted in Abuja, during a multi-stakeholder meeting on terrorism financing and violent extremism in the North-East organided by Civil Society Legislative Advocacy Centre (CISLAC) and Transparency International in Nigeria (TI-Nigeria).

In his remarks, CISLAC Executive Director, Comrade Auwal Ibrahim Rafisanjani who observed that terrorism constitutes a global threat, lamented that the “financial sector has been exploited for terrorism financing.

“The use of the financial sector indicates the increasing capabilities of some terrorist groups. These include the Bureau de Change operators, Point of Sale (POS) devices, wire transfers, and designated non-financial businesses and professions, among other enabling platforms expanding the scope and depth of terrorism financing.

“It is worrisome that illegal money exchangers including Bureau De Change have been featured in several Terrorism Financing investigations. The 2022 National Inherent Risk Assessment of Terrorism Financing report reveals that between 2019 and 2022, about 19 companies were linked to illegal money exchangers who have used their companies to comingle funds considered to be linked to terrorism financing.

“Illegal money exchangers are not under any form of regulations and as such, they implement any preventive measures. The activities of the illegal money exchangers provide a channel for moving illegally obtained funds for terrorism financing.

ALSO READ: EFCC reiterates plan to probe Matawalle

“While the banking sector in particular has in recent times been subjected to strict regulations that intend to increase transparency and identify suspicious transactions; however, studies illustrate that the banking sector continues to offer opportunities for terrorist financing; as current measures employed by banks have proven ineffective due to the knowledge gap that surrounds concrete methods terrorist financiers employ.

“For instance, in March 2024, the Economic and Financial Crimes Commission (EFCC) revealed that 70 percent of financial fraud in Nigeria were carried out in the banking sector.

“This includes the inside and outside related fraud. This disturbing report exposes the extent of illicit funds movement through the banking sector.”

Rafisanjani who doubles as Head of Transparency International (TI) Nigeria, maintained that the “consequences of terrorism have continued to aggravate extreme poverty rates among Nigerians, internally displacement, devastated livelihoods, just as opportunities for broader growth, development and prosperity are destroyed.

“Moreover, weak security and surveillance at national borders contribute to the issue of terrorism financing in Nigeria. This lack of control and monitoring allows terrorists, as well as small arms and light weapons, to infiltrate the country quickly.

“The former Chief of Defence Staff, Lucky Irabor, revealed that 137 out of about 261 borders in the North-East and North-West are unguarded. With such easy access, terrorist organisations conduct operations and finance their activities more efficiently.

“This stresses the imperative of strengthening security measures at borders by Nigerian authorities to prevent the inflow of funds and resources for terrorist activities. Poor collaboration on the part of law enforcement and regulatory agencies has contributed to the problem of terrorist financing in Nigeria.

“Effective information sharing is crucial in combating terrorism financing, yet there seems to be a lack of coordination among various agencies and institutions. This hinders the ability to track and intercept suspicious transactions and apprehend those responsible for financing terrorism.

“The lingering inter-agency rivalry among response agencies constitutes an impediment to intelligence gathering and information sharing for coordinated Response to potential violent signals. Unhealthy inter-agencies rivalry and struggles for superiority among response agencies competing for resources have been identified as major barriers to coordinated response to conflict warning signals at all levels.

“This in September 2022 had triggered a reaction from former Inspector-General of Police, Solomon Arase, who acknowledged that rivalry existed despite the fact that no individual agency could holistically handle security issues alone.

“More importantly, the capacity gaps within law enforcement and regulatory agencies also hamper efforts to address the challenge of terrorism financing effectively. These institutions must be adequately equipped and trained to detect and disrupt the financial networks of terrorist organisations. Without the requisite capacity, it becomes incredibly challenging to investigate and prosecute individuals involved in financing terrorism.”

In his presentation, EFCC Chairman, Ola Olukoyede gave insight into how some unscrupulous actors who hide under the cover of humanitarian activities to fund terrorist groups.

He said: “For us in the EFCC, like most Nigerians, the concern is on how this crisis continues to defy solutions and fester? How is it that the terrorist groups in the region are able to sustain their operations, acquire more sophisticated weaponry and engage in daring combat with the Nigerian military?

“Ladies and gentlemen, it would seem that an economy of criminality has developed around terrorism and violent extremism in the region, where actors who are profiting from the chaos do not cherish the return of civil order. How for instance do we explain the activities of supposed Non-Profit Organizations who profess to want to provide succor to the distressed but end up exploiting their misery for financial gains? How do we explain the action of unscrupulous actors who hide under the cover of humanitarian activities to fund terrorist groups? These are issues that we must continue to interrogate.

“The EFCC has had cause to prosecute so-called promoters of Non-Profit Organization who exploited the desperate conditions in the North-East to profiteer. I am sure many of you are aware of a Lady that is called Mama Boko Haram, who at the peak of the insurgency positioned herself as a credible intermediary for the insurgents, but is now in jail for exploiting the distressed citizens of the North East for personal gain.

“Part of the focus of the EFCC in the quest to tackle terrorism and violent extremism in that region is to follow the funds trail of critical actors in the region and cutting off the supply line of illicit funds to known criminal groups. This responsibility has seen the Commission pay more attention to the movement of funds by NPOs in the region, who are now required to make a declaration to the EFCC.

“Indeed the enactment of the Money Laundering( Prevention and Prohibition) Act, 2022 and the Terrorism (Prevention and Prohibition) Act, 2022 have strengthened the anti-money laundering and terrorism financing framework, with the Special Control Unit Against Money Laundering, SCUML which is domiciled in the Commission given powers to monitor, supervise, regulate and assess the activities of Designated Non-Financial Businesses and Professions (DNFBPs) and Non-Profit Organisations (NPOs) which are vulnerable to terrorist financing and money laundering in the country.

“As members of the Civil Society, you have vital roles to play in assisting the anti-corruption agencies to tackle illicit financial flows into the region. This calls for peer vigilance and willingness to blow the whistle against renegade civic society actors making mockery of the lofty ideals which most of you in this hall stand for.

“I also believe that citizens’ mobilization against terrorism financing and violent extremism in the North-East, the pedestal for this engagement points in the direction of the public taking ownership of the government’s counter-terrorism initiatives.

“We all have roles to play in ensuring that terror is defeated not only in the North East but everywhere in our beloved country.”

On his part, ICPC Chairman, Dr. Musa Aliyu who noted that North East region is yet to recover from the violent attacks and campaign of terror which started in 2009, argued that poverty and illiteracy are some of the main causes of terrorism in Nigeria.

In the bid to restore peace into the region, he observed that “these twin ills must be tackled effectively to stop extremism and violent dissent. Bad Governance and corruption have a direct relation with the prevalence of poverty and illiteracy.”

According to him, “almost 15 years after, the region is yet to recover. Thousands have been killed, properties worth billions destroyed, millions displaced from their ancestral homes, millions of children are out of school, poverty and malnutrition have worsened, etc.

“The devastation caused by this campaign of terror cannot be easily quantified. The overall impact of terrorism has been profound. The process of rebuilding shattered communities and restoring stability will come at a cost but it is a task that must be done.

“But, how did this start and how were these violent acts sustained over the years? The answers to these important questions are necessary if we are determined to dismantle the sophisticated networks that manage the illicit financial flows that facilitate the purchase of arms, the recruitment of terrorists, operational logistics, etc. that help to sustain the reign of terror.

“Tackling this intricate problem of terrorism financing is essential, as it is fundamental to crippling the operational capabilities of extremist groups and restoring peace and security to the region,” the ICPC helmsman noted.