The Economic and Financial Crimes Commission (EFCC) is preparing to arraign a Lagos-based Bureau De Change (BDC) operator, Mukhtar Adamu Muhammad, over allegations of financing terrorism linked to the Islamic State (IS).
Sources familiar with the case disclosed that the anti-corruption agency had made significant progress in its investigation well before the recent sanctions imposed by the United States government.
According to insiders, the EFCC had already completed key aspects of its probe and was finalising plans for prosecution before U.S. authorities sanctioned Muhammad and businesses associated with him.
The move follows sanctions announced by the U.S. Department of State against Muhammad and three Nigerian companies allegedly involved in suspicious financial transactions connected to terrorist activities.
American authorities accused the Lagos-based BDC operator of facilitating the movement of funds linked to the Islamic State West Africa Province (ISWAP) through financial networks operating within Nigeria.
The sanctions formed part of a wider international effort targeting individuals and organisations suspected of supporting ISIS operations in countries including Nigeria, Syria, Türkiye, and France.
Sources within the EFCC indicated that investigators focused extensively on financial dealings suspected to be connected to terrorism financing and other questionable fund transfers.
Although the commission has not yet issued an official statement on the matter, sources say legal proceedings are expected to commence soon.
Meanwhile, the Nigeria Sanctions Committee has endorsed the decision of the U.S. Office of Foreign Assets Control (OFAC) to designate Muhammad and two BDC firms for alleged involvement in terror financing.
The committee noted that the U.S. action came after Nigeria had already placed the affected individuals and entities on its national sanctions list.
Officials explained that the decision was based on intelligence gathering, financial investigations, and collaborative assessments conducted by security and regulatory agencies.
Authorities believe the individuals and companies were involved in facilitating, supporting, or financing activities associated with ISWAP and related terrorist networks.
Those listed include Ibrahim Yakubu Ogirima, Muktar Muhammad Adamu, Adamu Chiroma, Ibrahim Abubakar, Abdullahi Umar Usman, and Babangida Muhammed Adamu Hammajam.
The companies named are Abbal Bako & Sons Bureau De Change Limited, Generation Currency BDC Limited, and Nine to Nine BDC Limited.
The Federal Government has also reiterated its directive to financial institutions and designated non-financial businesses to fully comply with sanctions regulations.
This includes freezing identified assets, filing suspicious transaction reports, and promptly reporting flagged transactions to the relevant authorities.
The sanctions committee commended the efforts of key agencies involved in the investigation, including the Central Bank of Nigeria (CBN), the Department of State Services (DSS), the Nigerian Financial Intelligence Unit (NFIU), and the EFCC.
The government reaffirmed its commitment to disrupting financial support networks for terrorist organisations and strengthening the integrity and resilience of Nigeria’s financial system.