Nigeria's SEC Asset Freeze Targets Corporate Vehicles for Terrorism Financing
ZG
Zora Garrett
SEC retail investor rule · Apr 13, 2026
Source: DojiDoji Data Terminal
Capital market operators in Nigeria now face civil and criminal liabilities if they fail to freeze assets linked to 13 recently designated terrorism financiers. The Securities and Exchange Commission (SEC) directed the immediate freezing of assets linked to 10 individuals and three entities added to the Nigeria Sanctions List by the Nigeria Sanctions Committee.
Under the Terrorism (Prevention and Prohibition) Act, 2022, operators must identify and freeze all funds and economic resources associated with the listed parties without prior notification to the clients. The directive requires mandatory reporting of all frozen assets and attempted transactions to the Nigeria Sanctions Committee Secretariat.
Several of the affected individuals were convicted by the Abu Dhabi Federal Court of Appeal in April 2019 for financing Boko Haram through funds raised in Dubai and transferred to Nigeria. The SEC noted that corporate structures are frequently used as channels for these financial flows, necessitating heightened scrutiny of business entities.
The SEC stated the asset-freezing mechanism is preventive rather than punitive, designed to disrupt financial support systems before funds are deployed. The enforcement scope extends beyond traditional financial institutions to include Designated Non-Financial Businesses and Professions.
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