The Securities and Exchange Commission (SEC) has ordered an immediate freeze on the assets of 13 newly designated entities allegedly linked to terrorism financing within Nigeria’s capital market.
According to the Commission, the directive affects 10 individuals and three corporate bodies recently listed on the Nigeria Sanctions List by the Nigeria Sanctions Committee.
In a circular titled “Commission’s sweeping compliance directive issued to capital market operators,” the SEC said the action is based on the provisions of the Terrorism (Prevention and Prohibition) Act 2022, which mandates the immediate freezing of assets belonging to designated persons and organisations without prior notice.
The Commission instructed all capital market operators to fully comply with the order, stressing that it is binding and must be enforced without delay.
Operators are required to identify and freeze all assets connected to the listed entities and report any frozen funds or attempted transactions to the Nigeria Sanctions Committee Secretariat.
SEC also disclosed that some of the individuals had previously been convicted of terrorism financing by the Abu Dhabi Federal Court of Appeal in 2019, with links to Boko Haram-related activities involving cross-border fund transfers.
Sentences reportedly ranged from 10 years imprisonment to life terms, reflecting the severity of the offences.
The regulator further noted that some of the affected organisations were used as corporate structures to channel illicit funds, highlighting growing concerns over the misuse of business entities for financial crimes.
It stressed that the asset freeze is a preventive measure aimed at disrupting terrorist funding networks before funds can be deployed.
The Commission warned that failure to comply with the directive could result in both civil and criminal penalties, as well as reputational damage for financial institutions.
The order also extends to designated non-financial businesses and professions, broadening enforcement across Nigeria’s financial system.
According to the SEC, the move reinforces its zero-tolerance stance on money laundering and terrorism financing, and underscores the need for real-time monitoring, strict compliance, and enhanced reporting by market operators.