FG Moves to Prosecute US-Sanctioned BDC Operator Over Alleged ISIS Financing

The Economic and Financial Crimes Commission (EFCC) had already commenced investigations into a Lagos-based Bureau De Change operator, Mukhtar Adamu Muhammad, and three companies linked to him over alleged terrorism financing before sanctions were imposed by the United States government, sources within the anti-graft agency have disclosed.

Top EFCC officials familiar with the matter revealed that the commission had completed significant aspects of its investigation and was preparing charges against the suspects when the U.S. government announced sanctions against them.

According to one source, the probe focused on alleged financial transactions suspected to be connected to terrorist operations and funding networks.

“We investigated these individuals and the BDC companies for terrorism financing and were preparing charges against them when the U.S. indicted them,” the source said.

The development followed the designation of Muhammad and three Nigerian companies linked to him by the United States as alleged financial facilitators of activities associated with the Islamic State of Iraq and Syria (ISIS).

The sanctions formed part of a broader action targeting individuals and entities accused of moving funds for ISIS operations across several countries.

In a statement issued by the U.S. Department of State, authorities identified Muhammad, also known as Mukhtar Muhammad, as a Lagos-based Bureau De Change operator alleged to have facilitated the movement of funds on behalf of the Islamic State West Africa Province (ISWAP).

The sanctions freeze any assets or interests belonging to the designated individuals and entities within U.S. jurisdiction and generally prohibit American citizens and businesses from engaging in transactions with them.

Although the EFCC has not officially commented on the matter, sources indicated that formal charges are being prepared based on findings from the commission’s investigation.

Meanwhile, the Nigeria Sanctions Committee has welcomed the decision by the U.S. Office of Foreign Assets Control to sanction Muhammad, Nine to Nine Bureau De Change Limited, and Generation Currency BDC Limited over alleged links to terrorism financing.

The committee noted that the U.S. action followed Nigeria’s earlier designation of the individuals and entities on the Nigeria Sanctions List on June 18, 2026.

According to the committee, extensive intelligence gathering, financial investigations and inter-agency assessments established reasonable grounds to believe that the affected individuals and entities facilitated, financed or supported the activities of ISWAP and associated terrorist networks.

The Federal Government reiterated its directive to financial institutions and designated non-financial businesses to comply fully with sanctions obligations, including asset-freezing measures, suspicious transaction reporting and cooperation with relevant authorities.

The government also reaffirmed its commitment to working with domestic and international partners to combat terrorism financing, strengthen financial integrity and deny terrorist groups access to resources that sustain their operations.