ABUJA — Nigeria’s House of Representatives has raised alarm over the country’s growing exposure to international sanctions, warning that an estimated ₦2.23 trillion ransom economy is not only fueling terrorism and kidnapping but also threatening the nation’s financial credibility.
The lawmakers on Wednesday urged the Federal Government to urgently strengthen anti-money laundering enforcement and financial intelligence systems to curb illicit financial flows linked to insecurity.
The warning followed the adoption of a motion sponsored by Hon. Ademorin Kuye, who stressed that persistent weaknesses in financial oversight could deepen Nigeria’s vulnerability on the global stage, particularly its continued placement on the Financial Action Task Force (FATF) grey list.
Citing reports from the Nigeria Financial Intelligence Unit (NFIU), the National Bureau of Statistics (NBS) Crime Experience and Security Perception Survey 2024, and other security analyses, Kuye said Nigerians paid about ₦2.23 trillion in ransom between January 2021 and June 2025.
According to him, the scale of these payments has created a parallel criminal economy that sustains banditry and terrorism while undermining national security.
“This growing ransom economy is fueling organised crime and weakening Nigeria’s economic sovereignty,” he warned.
The House noted that criminal networks are exploiting both formal and informal financial channels—including Point-of-Sale (POS) operators, Bureau De Change services, cryptocurrency platforms and informal transfer systems—to move and conceal illicit funds.
Lawmakers expressed concern that such activities complicate investigations, weaken asset recovery efforts and erode public trust in financial institutions.
They called on President Bola Tinubu to establish a coordinated inter-agency framework to improve intelligence sharing among security, regulatory and financial bodies.
The House also directed the Central Bank of Nigeria (CBN), NFIU and other regulators to intensify monitoring of suspicious financial transactions, particularly in high-risk regions, and to conduct a comprehensive audit of POS operations.
In addition, the Federal Ministry of Finance was urged to invest in advanced financial tracking infrastructure to detect and disrupt ransom-related transactions in real time.
The lawmakers further mandated the Attorney-General of the Federation and law enforcement agencies to investigate and prosecute individuals and organisations involved in facilitating ransom payments.
Debate on the motion revealed divisions among lawmakers over how to address ransom payments.
Hon. Yusuf Gagdi argued that paying ransom incentivises criminal activity, stating that it “encourages kidnappers to continue their operations.”
However, Hon. Ahmed Jaha countered that victims’ families often have limited options, especially in conflict-affected regions.
“For those in insecurity-ravaged areas, ransom sometimes becomes the only means of survival,” he said.
To ensure compliance, the House mandated its relevant committees to monitor implementation and report back within four weeks.
Security experts have consistently warned that dismantling the financial backbone of criminal groups is critical to addressing Nigeria’s worsening insecurity, with the latest legislative action underscoring the urgent need for coordinated economic and security reforms.
