Insecurity: Reps probe ₦2.23tn ransom economy fueling terrorism

The Nigerian House of Representatives has demanded immediate executive action to dismantle the financial infrastructure fueling kidnapping, banditry, and terrorism across the country. Lawmakers are urging the Federal Government to enhance financial intelligence coordination and tighten oversight on Bureau De Change operators, Point-of-Sale (POS) operators, and other financial intermediaries.

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Nigerians paid about N2.23tn in ransom between January 2021 and June 2025.

The resolution followed a motion highlighting the government's constitutional duty to protect lives and economic sovereignty. The motion cited existing laws, including the Money Laundering (Prevention and Prohibition) Act and the Terrorism (Prevention and Prohibition) Act of 2022, which mandate financial institutions and agencies to report and prevent transactions linked to money laundering, terrorism financing, and ransom payments. Concerns were raised about the escalating scale of Nigeria's "ransom economy."

Data from the Nigeria Financial Intelligence Unit, the National Bureau of Statistics Crime Experience and Security Perception Survey (2024), and independent research organizations estimate that Nigerians paid around N2.23 trillion in ransom between January 2021 and June 2025. This substantial amount, lawmakers argued, directly fuels organized criminal activities nationwide. Findings from the National Counter Terrorism Centre indicate that some POS operators and other financial channels have been exploited to facilitate ransom payments and obscure financial trails, complicating investigations and asset recovery efforts.

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the huge sums paid to kidnappers have continued to fuel organised criminal activities across the country.

Criminal groups are increasingly exploiting both formal and informal financial systems, including Bureau De Change operators, hawala networks, cryptocurrency platforms, livestock transactions, and trade-based money laundering schemes, to launder proceeds of crime. The House noted that persistent weaknesses in financial intelligence coordination and anti-money laundering regulations expose Nigeria to heightened security risks, erode public confidence, and increase vulnerability to international sanctions, including its continued placement on the Financial Action Task Force grey list. Consequently, the House urged President Bola Tinubu to establish a coordinated inter-agency framework to disrupt ransom financing and improve collaboration among security, regulatory, and financial institutions.

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Criminal groups are increasingly using both formal and informal financial systems, including Bureau De Change operators, hawala networks, cryptocurrency platforms, livestock transactions and trade-based money laundering schemes, to launder proceeds of crime and integrate them into the legitimate economy.