The Federal Government has directed banks, financial institutions and designated non-financial businesses and professions across the country to immediately identify and freeze accounts and assets linked to individuals and entities designated as terrorism financiers.

The directive, issued through the Nigeria Sanctions Committee (NSC), forms part of ongoing efforts by the government to strengthen the fight against terrorism financing and disrupt financial networks supporting extremist activities.

According to the committee, all financial institutions are required to implement the sanctions without delay and ensure that funds, assets and other economic resources belonging to designated persons and organisations are frozen immediately.

The government said the action was in line with the provisions of the Terrorism (Prevention and Prohibition) Act as well as Nigeria's obligations under international counter-terrorism financing frameworks.

Under the directive, banks and other reporting entities are expected to search their databases for accounts, transactions and assets connected to the affected individuals and entities and report any matches to the relevant authorities.

The sanctions follow the designation of several individuals and companies accused of providing financial support to terrorist groups operating within and outside Nigeria.

The NSC warned that failure to comply with the directive could attract regulatory sanctions and other penalties under existing laws. It also urged financial institutions to strengthen their compliance and monitoring systems to detect suspicious transactions linked to terrorism financing.

Security experts say the latest move underscores the Federal Government's determination to cut off funding sources for terrorist organisations and enhance national security. The development comes amid intensified efforts by Nigerian authorities and international partners to combat money laundering, terrorism financing and other transnational financial crimes.

Analysts believe the crackdown will further reinforce Nigeria's anti-money laundering and counter-terrorism financing regime while improving the country's standing in global financial compliance assessments.