The Securities and Exchange Commission (SEC) has directed capital market operators to immediately freeze the funds, assets and other economic resources belonging to six individuals and three entities designated as terrorist financiers by the Nigeria Sanctions Committee (NSC).
The directive, which takes immediate effect, requires all capital market-regulated entities (CMREs) to identify and freeze the assets of the designated persons and entities without prior notice, while reporting all frozen assets and related actions to the Secretariat of the Nigeria Sanctions Committee.
The SEC disclosed the directive in a circular signed by its management, and published on its website, stating that the designations were made under the provisions of the Terrorism (Prevention and Prohibition) Act (TPPA), 2022.
The regulator also instructed capital market operators to prohibit any dealings with the designated individuals and entities and maintain continuous monitoring of transactions that may involve them.
The six individuals named on the Nigeria Sanctions List are Babangida Muhammed Adamu Hammajam, Abdullahi Umar Usman, Ibrahim Abubakar, Adamu Chiroma, Muktar Muhammad Adamu and Yakubu Ogirima Ibrahim.
The entities are Nine to Nine BDC Ltd, Generation Currency BDC Ltd and Abbal Bako & Sons Bureau de Change.
According to the SEC, regulated entities must immediately identify and freeze all funds, assets and other economic resources in the possession of, owned or controlled by the designated persons, as well as report any attempted transactions involving them.
The commission further directed operators to submit reports to the Secretariat of the Nigeria Sanctions Committee detailing assets frozen, measures taken to comply with the sanctions and any attempted transactions involving the listed individuals or entities.
As part of the anti-money laundering and counter-terrorism financing measures, the SEC instructed capital market operators to file suspicious transaction reports with the Nigerian Financial Intelligence Unit (NFIU) whenever there is a name match involving any person or entity on the sanctions list.
The regulator said such reporting requirement applies to financial transactions conducted before or after receipt of the sanctions list, underscoring the need for operators to strengthen transaction monitoring and customer screening procedures.
“Take Note that at all times, any unusual or suspicious transactions MUST be promptly reported to the Nigerian Financial Intelligence Unit (NFIU),” the commission stated.
The SEC’s directive forms part of broader efforts by financial regulators to prevent Nigeria’s capital market from being used to move, conceal or facilitate funds associated with terrorism and other illicit financial activities.
The commission said Hammajam was listed on June 18, 2026, over alleged involvement in terrorism financing and support for the Islamic State West Africa Province (ISWAP).
Usman was designated for allegedly providing material support to a designated terrorist organisation through repeated financial transactions, while Ibrahim was listed over alleged involvement in terrorism financing and membership of ISWAP.
The sanctions require capital market operators to exercise heightened vigilance in their dealings with customers and counterparties and to promptly escalate transactions that raise concerns under Nigeria’s anti-money laundering and counter-terrorism financing framework.
The SEC warned that failure by any regulated entity to comply with the directive would constitute a violation of the Investments and Securities Act, 2025, as well as its Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Rules and Regulations.
The commission said non-compliance could attract regulatory sanctions, including fines, suspension of operations or revocation of registration.
The directive therefore places an immediate compliance obligation on capital market operators to screen their records, identify potential matches, restrict access to assets where applicable and report relevant transactions and actions to the appropriate authorities.
(The Whistler)