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The Central Bank of Nigeria (CBN) has strengthened its regulatory focus on combating terrorism financing by designating it a current supervisory priority, a move aimed at safeguarding the country's financial system from exploitation by illicit actors.

In a statement on Tuesday, the apex bank said the enhanced supervisory attention will focus on key areas including terrorism financing risk management, transaction monitoring, implementation of targeted financial sanctions, and the reporting of suspicious transactions linked to terrorism financing activities.

The CBN said the initiative forms part of its broader commitment to maintaining the integrity of Nigeria’s financial sector and ensuring compliance with anti-money laundering, counter-terrorism financing and counter-proliferation financing requirements.

According to the bank, supervision will continue to be conducted through a risk-based approach, combining on-site examinations and off-site engagements with financial institutions. The objective is to strengthen controls and ensure institutions meet their existing legal and regulatory obligations.

The central bank noted that the heightened focus also aligns with Nigeria’s ongoing efforts to enhance domestic and international cooperation in the fight against terrorism financing and proliferation financing, while promoting financial integrity and protecting the stability of the financial system.

The CBN added that further supervisory engagements will be carried out as necessary to support effective implementation of the new priority areas across the financial sector.

The development underscores the regulator’s increasing emphasis on identifying and mitigating financial crime risks as Nigeria continues efforts to strengthen its anti-financial crime framework.