Security experts have called for stricter regulation of Nigeria’s financial system, particularly the Bureau de Change (BDC) sector, following the designation of a Nigerian and several firms by the United States as alleged financiers of the Islamic State (ISIS).

The experts argued that weak oversight of financial channels could continue to undermine efforts to combat terrorism if loopholes are not addressed.

They were reacting to the latest sanctions announced by the U.S. Department of State, which designated three individuals and six entities across France, Syria, Türkiye and Nigeria for allegedly facilitating the movement of funds for ISIS operations.

In a statement issued on Monday, U.S. Department of State spokesperson Thomas Pigott said the network enabled the terrorist group to move money across international borders.

The U.S. also designated Lagos resident Muhammad Mukhtar Adamu and companies allegedly associated with him as terrorist financiers.

Commenting on the development, security expert and Executive Director of the Niger Delta Development Initiative, Chief Nengi James, said the allegations highlight the need for stronger oversight of Nigeria’s financial system.
According to him, terrorism financing is often sustained through organised financial networks involving multiple actors.

“It is an organised crime. It is not about one suspect alone. There are usually several financial channels involved in the movement of funds linked to terrorism,” he said.

James argued that greater scrutiny of Bureau de Change operations and other financial institutions is necessary to strengthen anti-money laundering measures and improve transparency.

He also expressed concern over what he described as institutional weaknesses in the country’s counter-terrorism framework, alleging that corruption and poor accountability continue to undermine security operations.

Another security consultant, Abubakar Sadeeq, said combating terrorism requires stronger political commitment and more effective disruption of funding networks.

According to him, security agencies must intensify efforts to identify and dismantle the financial structures that sustain terrorist groups.

He also stressed the need for improved intelligence gathering, enhanced financial surveillance and stronger inter-agency collaboration.

James further described Nigeria’s financial accountability system as requiring significant reforms to improve transparency and public confidence.

He urged the government to strengthen regulatory institutions, enforce anti-money laundering laws more rigorously and ensure greater accountability in the management of public resources.

The experts maintained that disrupting terrorist financing remains one of the most effective strategies for weakening extremist groups and improving Nigeria’s overall security.