Terrorists Exploit Crowdfunding Networks to Raise Funds — NFIU

The 2026 Annual Nigeria Financial Intelligence Report has raised concerns over the growing use of crowdfunding platforms and social media by terrorists and extremist groups to raise money for their activities.

The Nigeria Financial Intelligence Unit (NFIU) said foreign-based facilitators were increasingly soliciting donations under the guise of humanitarian assistance or educational support before moving the funds through several channels to terrorist operatives in Nigeria.

According to the report, sympathisers were encouraged to make relatively small donations through online payment platforms and bank accounts. The funds were later consolidated and transferred through multiple intermediaries to obscure their source and final beneficiaries.

The NFIU said the schemes also involved the use of social media and encrypted messaging platforms to circulate donation appeals and payment details.

The funds, it added, were eventually transferred through money transfer operators and remittance applications to networks of individuals in Nigeria who allegedly acted as money mules.

The agency identified students, small-business operators and relatives among those allegedly used to receive or move the funds. It said the approach was designed to make the transactions less conspicuous and complicate efforts to trace the money.

The report further stated that the funds could later be converted into cash or used to acquire items that could serve both legitimate and illicit purposes before being transferred to logistics coordinators and field operatives.

Women’s Accounts Used as Fronts

The NFIU also disclosed that terrorist financiers were using bank accounts registered in the names of women while male commanders or logistics handlers allegedly maintained control of the funds.

According to the agency, wives, sisters and female associates were sometimes used as fronts to create distance between illicit funds and the actual beneficiaries.

The report said some account holders might not have been fully aware of the transactions taking place through their accounts.

The NFIU also identified the use of telephone numbers that were not registered to the actual account holders or beneficiaries for mobile banking and transaction alerts.

It said the use of SIM cards linked to other individuals could make it more difficult for investigators to establish the connection between bank accounts, phone numbers and the real beneficiaries of transactions.

ISWAP Allegedly Uses Coded Transaction Descriptions

The report further said terrorist cells, including those linked to the Islamic State West Africa Province (ISWAP), used transaction descriptions as part of their internal financial management.

According to the NFIU, some transactions contained detailed descriptions that helped field commanders account for expenses to financial controllers.

However, the agency said some facilitators also relied on apparently harmless words, codes and alphanumeric combinations to conceal the purpose of transfers and avoid detection by automated financial monitoring systems.

The report noted that the use of different languages and coded descriptions could further complicate efforts to identify suspicious transactions.

Financial Fraud and Scams Also Rising

Beyond terrorism financing, the NFIU said its analysis identified an increasingly complex financial crime environment involving technology, fraud and cross-border transactions.

The agency highlighted the rising prevalence of Ponzi schemes, fraudulent crowdfunding operations, cryptocurrency-related investment scams and hacking-linked fraud.

It said criminals were increasingly exploiting weaknesses in fintech onboarding systems and digital platforms to recruit victims and move illicit funds.

The NFIU also identified the diversion of public funds through accounts belonging to government finance officials and third parties as a continuing concern.

Procurement processes were identified as another area vulnerable to financial abuse, while the continued use of cash transactions was said to make it more difficult to establish clear audit trails and trace assets.

The report stressed the need for stronger financial monitoring and greater vigilance as criminals continue to adopt digital platforms and alternative channels to conceal and move illicit funds.