Army Chief Tasks Nigerian Banks on Tracking Terror Funds, Illicit Financial Flows

The Chief of Army Staff (COAS), Lieutenant General Waidi Shaibu, has called on Nigeria’s banking industry to strengthen its role in combating terrorism financing and other illicit financial activities that threaten national security. 

The Chief of Army Staff (COAS), Lieutenant General Waidi Shaibu, has called on Nigeria’s banking industry to strengthen its role in combating terrorism financing and other illicit financial activities that threaten national security.

Shaibu made the call on Monday during a courtesy visit by the Group Managing Director and Chief Executive Officer of United Bank for Africa (UBA), Mr. Oliver Alawuba, to the Army Headquarters in Abuja.

The Army Chief described the financial sector as a critical partner in safeguarding national stability and supporting economic resilience, stressing that disrupting the financial networks of criminal groups remains central to Nigeria’s security strategy.

What they are saying  

Addressing Alawuba, who also serves as Chairman of the Body of Bank CEOs, Shaibu urged the banking industry to enhance financial surveillance systems and strengthen intelligence-sharing mechanisms capable of identifying and blocking suspicious transactions.

He said greater collaboration among financial institutions is needed to track and disrupt funding channels linked to terrorism, banditry, kidnapping, and other forms of organised crime.

• “Disrupting the financial lifelines of criminal networks remains a key component of Nigeria’s counter-terrorism and internal security strategy,” the Army Chief said.

He called on the banking sector to mobilise resources and expertise toward improving the detection of illicit financial flows that fuel insecurity across the country.

More insights

Beyond security concerns, Shaibu highlighted the Nigerian Army’s commitment to improving the welfare of its personnel as part of efforts to enhance operational effectiveness and force readiness.

He disclosed that the Army is partnering with UBA to develop structured mortgage schemes and housing initiatives aimed at increasing homeownership opportunities for serving and retired military personnel.

According to him, the initiative will complement ongoing efforts to renew and upgrade barracks infrastructure across the country.

In his remarks, Alawuba reaffirmed UBA’s commitment to supporting the Nigerian Army through tailored financial solutions and welfare programmes.

He said the bank would continue to provide support in areas such as mortgage financing, military infrastructure development, and other initiatives designed to improve the welfare of personnel.

The UBA chief also pledged assistance in facilitating efficient financial services for Nigerian military personnel participating in international peace support operations.

What you should know

The Army Chief’s call comes amid heightened efforts by the Federal Government to curb terrorism financing and money laundering activities.

• The government has previously warned that banks, financial institutions, and professional service firms found to be aiding or facilitating terrorism financing would face severe sanctions.
• Authorities have maintained that financial flows remain the lifeblood of terrorist and criminal networks, making the disruption of illicit funding channels a key pillar of national and global counter-terrorism efforts.
• The Federal Government has also indicated that executives of institutions found complicit in terrorism financing could face prosecution, while offending organisations risk heavy penalties or closure.

Security experts have consistently argued that strengthening financial intelligence, improving regulatory compliance, and enhancing cooperation between security agencies and financial institutions are essential to tackling insecurity and organised crime in Nigeria.