Following International Anti-Corruption Day, President Bola Ahmed Tinubu’s Nigerian government faces critical examination for its methods in tackling terrorism financing. At the 27th Inter-Governmental Action Group Against Money Laundering in West Africa (GIABA), Attorney General and Minister of Justice, Mr Lateef Fagbemi, argued that disclosing the identities of known terrorism financiers might impede ongoing investigations and arrests. His statement at this crucial forum, aimed at fighting money laundering and terrorist financing, casts doubts on the administration’s dedication to these vital issues.
According to a report by The Guardian, GIABA, an ECOWAS institution, aims to shield member states from financial crimes, including money laundering and terrorist financing. However, Mr Fagbemi’s stance appears to clash with GIABA’s goals and the worldwide push for transparency and accountability in combating terrorism.
A GIABA report on Nigeria recently revealed significant gaps in the country’s approach to Money Laundering (ML) and Terror Financing (TF) threats. The report identified an underdeveloped understanding of ML risks, such as corruption, fraud, and the involvement of legal entities and politically exposed persons. It acknowledged Nigeria’s awareness of TF risks but called for enhancements in managing cross-border flows and vulnerabilities within the formal financial sector.
The report criticized the limited application of financial intelligence by Nigerian Law Enforcement Agencies (LEAs), the lack of adequate feedback mechanisms, and the narrow range of entities submitting suspicious transaction reports. It also highlighted Nigeria’s shortcomings in seizing and confiscating crime proceeds and instruments, especially those related to TF.
In February, the Financial Action Task Force reportedly added Nigeria and South Africa to its ‘grey list’ of countries failing to adequately combat financial crimes like money laundering and terrorism financing. This designation could negatively impact investor confidence and Nigeria’s international reputation.
Nigeria’s Terrorism (Prevention and Prohibition) Act, 2022, explicitly prohibits terrorism and its financing, outlining penalties for facilitators and funders of these crimes. Yet, the government’s hesitance to name known terrorism financiers hampers the battle against these serious offenses.
The United Nations defines terrorism as acts designed to instil terror for political ends, recognizing it as a major threat to global peace and security. As a UN member, Nigeria is expected to uphold this international stance against terrorism. Nonetheless, the government’s current strategy provokes questions about its commitment to these global obligations.
