The Nigerian Financial Intelligence Unit has uncovered an emerging crowdfunding network allegedly being used to raise, move and conceal funds for terrorist activities in Nigeria.
According to Channels Television, the findings were contained in the NFIU’s 2025 Annual Report, which examined emerging patterns in terrorist financing, financial fraud and other financial crimes. The report is listed among the agency’s official annual publications.
The financial intelligence agency identified foreign-based fundraising campaigns, proxy bank accounts, money mules, remittance applications and telephone numbers registered to unrelated or deceased persons as methods allegedly employed to disguise illicit transactions.
Donations Disguised as Humanitarian Support
Channels Television reported that foreign-based facilitators allegedly use social media to request donations under the guise of humanitarian relief or educational assistance.
Links to payment pages and conventional bank accounts are reportedly distributed through encrypted messaging platforms, including Telegram and Signal.
The NFIU said hundreds of sympathisers could be encouraged to contribute between $50 and $500 each, with the individual donations deliberately kept small to reduce the possibility of triggering automated anti-money laundering alerts.
The proceeds are subsequently consolidated in a master account allegedly controlled by a senior member of the network who is legally resident outside Nigeria.
Once the accumulated funds reach a particular threshold, the money is reportedly divided into numerous smaller transfers and sent to recipients in Nigeria.
Students, Business Owners Used as Money Mules
The NFIU identified students, small-business owners and relatives among those who could be used as financial intermediaries or money mules.
Rather than transferring one large sum, the financiers allegedly fragment the money into several transactions routed through International Money Transfer Operators and remittance applications.
According to the report, the fragmentation is intended to avoid reporting thresholds and make it difficult for investigators to establish the source and final destination of the funds.
Recipients may subsequently convert the money into cash, transfer it to field operatives or use it to purchase dual-use items such as motorcycles, fertilisers and satellite internet equipment.
The NFIU described the movement of the funds into terrorist operations as the integration stage of the financing process.
Women’s Accounts Allegedly Used as Proxies
The report also identified what the agency described as gender-based proxy accounts.
According to the NFIU, bank accounts may be opened in the names of wives, sisters or female associates while male commanders and logistics managers retain control of the ATM cards, mobile-banking credentials and personal identification numbers.
The agency described the practice as a form of identity laundering intended to distance the actual operatives from the transactions.
Some of the women whose identities are used may allegedly be unaware of the nature and volume of transactions passing through their accounts.
Deceased Persons’ SIMs Break Audit Trails
The NFIU further disclosed that terrorist facilitators allegedly use telephone numbers that are not registered to the true account holders or beneficiaries.
These may include pre-registered SIM cards, telephone lines registered to deceased persons and numbers associated with proxy account holders.
The practice allegedly breaks the connection among the bank account, SIM card and Bank Verification Number.
When a suspicious transaction is flagged, investigators may consequently trace the telephone number to an unrelated person while the actual facilitator remains unidentified.
ISWAP Cells Use Transaction Narrations
Channels Television further reported that the NFIU uncovered unusual transaction-description methods allegedly used by terrorist cells, particularly those linked to the Islamic State West Africa Province.
Some cells reportedly use precise, professional-sounding transaction narrations as an internal accounting system through which field commanders account for operational expenses.
The report said analysts had observed frequent logistics-related payments from a single source to several recipients, accompanied by detailed descriptions.
Other facilitators allegedly use innocent-looking expressions, secret codes, alphanumeric combinations and multiple languages to prevent automated banking systems from detecting suspicious keywords.
Fintech, Ponzi Schemes Raise Concerns
Beyond terrorist financing, the NFIU identified an increasingly interconnected threat involving financial crime, technology and cross-border transactions.
The agency noted growth in Ponzi schemes, fraudulent crowdfunding, cryptocurrency-related investment scams and fraud involving compromised social media and messaging accounts.
It also warned that criminals were exploiting weaknesses in fintech onboarding procedures, particularly account categories requiring minimal identification.
The report identified persistent vulnerabilities in public financial management, including the alleged diversion of state and local government funds through accounts belonging to finance officers and associated third parties.
Procurement processes and extensive cash transactions were also identified as risk areas capable of frustrating audit trails and asset recovery efforts.
The NFIU said the findings had been converted into targeted advisories, executive alerts and strategic intelligence products to support financial institutions, policymakers and competent authorities in responding to the threats.
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