Reported by: L. Imafidon | Edited by: Gabriel Osa
Abuja — The National Coordinator of the National Counter Terrorism Centre (NCTC), Major General Adamu Garba Laka, has raised serious concerns over how Nigeria’s financial ecosystem is being exploited by criminal networks to fuel kidnapping and terrorism, with some Point of Sale (POS) operators playing an unwitting or complicit role in the illicit flow of ransom funds.
Addressing journalists at an end-of-year media parley in Abuja, General Laka said that while POS agents have significantly expanded financial inclusion across the country, a troubling pattern has emerged in which kidnappers and terrorist groups use these terminals to receive ransom payments and move funds with minimal detection by authorities. According to Laka, victims or their relatives are often instructed by criminals to transfer agreed ransom amounts directly to accounts linked to POS operators, where the funds are then collected in cash by the perpetrators. This technique, he warned, makes it difficult for law enforcement agencies to trace financial flows and disrupt criminal financing networks effectively.
“Another major challenge we face is the involvement of POS operators. In many cases, ransom payments are transferred by victims directly to POS operators whose account details are provided by terrorists,” Laka said, emphasising that security agencies are actively addressing the issue and will not relent in efforts to close loopholes in the financial system.
The NCTC chief’s comments reflect growing concerns about the unintended consequences of rapid fintech adoption in Nigeria. Point of Sale terminals have become ubiquitous across urban and rural areas, often serving as the primary means of cash withdrawals and transfers for individuals without direct access to bank branches. However, Laka’s warning highlights how such systems can be manipulated by criminal networks to facilitate ransom payments that sustain kidnapping operations and, by extension, criminal and terror financing.
In his remarks, Laka expanded on emerging criminal tactics, explaining that kidnappers and terrorists are constantly adapting their methods to evade detection. Beyond exploiting financial transactions through POS networks, he noted that some criminal elements are using advanced technology such as artificial intelligence and voice-cloning to orchestrate fraudulent kidnappings and extort money from unsuspecting relatives of purported victims. These evolving strategies underscore the need for robust counter-terrorism financing frameworks and stronger collaboration between financial institutions, security agencies and technology platforms.
Although the use of POS terminals by criminal elements poses a significant challenge, Laka stressed that the government is not passive in the face of these threats. He said security agencies are intensifying efforts to track ransom flows, arrest individuals involved in terror financing and disrupt networks that benefit from the trade in human lives. Nigerian authorities have also been working to strengthen oversight and intelligence capabilities aimed at identifying suspicious transactions before they can be converted into cash by criminals.
His warning comes against a backdrop of persistent insecurity across large swathes of Nigeria, where kidnappings for ransom have become a lucrative criminal enterprise, often entangled with terrorism financing and regional instability. Laka noted that Nigeria’s relative economic strength, coupled with weak financial safeguards in some areas, has made the country a magnet for criminal organisations seeking to generate large sums from ransom demands, which in many instances can run into tens of millions of naira.
Security analysts say the issue of ransom financing underscores deeper systemic challenges. While Nigeria’s fintech revolution has broadened access to financial services, rapid growth has sometimes outpaced regulatory and enforcement frameworks, creating gaps that can be exploited. Experts argue that strengthening “Know Your Customer” (KYC) compliance, expanding transaction monitoring and enhancing collaboration between banks, fintech firms and intelligence agencies are critical steps toward disrupting the financial channels that feed kidnapping and terror networks.
For their part, regulators such as the Central Bank of Nigeria (CBN) have issued directives on agent banking and POS operations, including the need for proper customer identification and reporting of suspicious activities to the Nigerian Financial Intelligence Unit (NFIU). Yet the practical implementation of these rules remains uneven, particularly in rural and underserved regions where informal financial services predominate.
Laka also stressed that operational details about counter-terrorism efforts must be handled carefully to avoid compromising ongoing and future security operations. He said some information has been deliberately withheld from the public to protect sensitive aspects of investigations and tactical planning.
The warnings from the NCTC underscore the complex interplay between financial inclusion, technological innovation and national security in Nigeria. As authorities work to balance the benefits of expanding financial services against the risks posed by criminal exploitation, the government’s broader strategy will need to integrate financial regulation with security enforcement to safeguard ordinary citizens and stem the financial lifelines of kidnappers and terror groups.
With insecurity continuing to evolve and adapt, Laka’s message serves as a stark reminder of the multifaceted threats facing Nigeria and the importance of collaborative efforts across sectors to protect lives, disrupt criminal economies, and strengthen resilience against terrorism and organised crime.
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