Businesses operating across Nigeria’s financial system are facing heightened compliance risks as regulators intensify efforts to detect tax crimes, fraud, money laundering and the movement of illicit funds through formal and digital channels.
The Nigerian Financial Intelligence Unit (NFIU) recorded 42,082 suspicious transaction reports (STRs) in 2025, with banks accounting for 92 percent of the filings.
Although total STRs fell sharply from more than 82,000 in 2024, the NFIU’s report shows that financial institutions remain a critical line of defence against illicit financial flows.
Deposit money banks submitted 38,715 STRs, while other financial institutions filed 2,185. Designated non-financial businesses and professions accounted for 1,029, capital market and insurance operators 104, and virtual asset service providers 49.
The NFIU’s assessment also points to the scale of compliance exposure for businesses. Tax crimes represented 30 percent of its top 10 designated offences, fraud 21 percent and money laundering 15 percent.
Bribery and corruption and terrorism-related offences each accounted for eight percent.
The agency received 41.72 million currency transaction reports and 28.1 million reports involving politically exposed persons, with PEP-related reports increasing by 31 percent from the previous year.
Banks contributed 8,313 of the 10,513 suspicious activity reports received by the NFIU.
ALSO: CardinalStone cuts Presco to HOLD as costs, dilution cloud 2026 earnings
The intelligence agency warned that businesses and consumers are also increasingly exposed to fraud through Ponzi schemes, fraudulent crowdfunding, cryptocurrency investment scams and hacking.
Another emerging risk is identity laundering, which involves the use of accounts and telecommunications identities belonging to third parties to conceal the actual controllers of transactions.
The NFIU said the practice is being facilitated through pre-registered SIM cards, SIMs registered to deceased persons and proxy accounts.
The development could raise compliance costs for financial institutions as they strengthen customer identification and transaction monitoring systems to establish beneficial ownership and detect unusual patterns.
The NFIU received 41.72 million currency transaction reports during the year, while reports involving politically exposed persons rose to 28.1 million, a 31 percent increase from 2024.
The agency stated that it disseminated 3,431 domestic intelligence reports to law enforcement and regulatory agencies in 2025. Of these, 1,398 were proactive reports generated through the NFIU’s own analysis, while 2,033 were reactive reports produced in response to requests or identified cases.
Beyond digital fraud, the NFIU identified weaknesses in Nigeria’s identity management systems as another vulnerability being exploited by terrorist financiers.
It said criminals were increasingly using pre-registered SIM cards, SIM cards belonging to deceased persons and proxy accounts to conceal the identities of individuals controlling transactions.
In some cases, accounts are reportedly opened in the names of wives, sisters or female associates, while male commanders retain control of the ATM cards, mobile banking credentials and personal identification numbers.
The NFIU described the practice as “identity laundering”, saying it makes it more difficult for investigators to establish the real individuals behind suspicious transactions.
