The thorny issue of terrorist financing continues to raise deep concerns among government and international bodies. Speaking at a recent symposium organized by the NDC Center for Strategic Studies and Research, Commander Olotu noted that despite years of efforts to weaken terrorist groups such as Boko Haram, they have managed to sustain their activities by taking advantage of various sources of funding.
It is alarming to note that Boko Haram, after nearly 14 years of existence, has diversified its sources of income, ranging from local extortion to kidnapping, robbery and illegal mining. Between 2014 and 2020, the group’s estimated annual revenues varied considerably, from $20 million to $70 million in 2014 to less than $10 million in 2020. This apparent decline in revenue, however, underscores the need to remain vigilant against these terrorist organizations’ attempts to replenish their financial resources.
Concerted international, regional, and national efforts to counter terrorist financing have proven crucial in weakening organizations such as the Islamic State (ISIS) and Al-Qaeda in the Islamic Maghreb (AQM). Indeed, while ISIS generated between $1 billion and $2 billion in 2014, these figures dropped to between $200 million and $300 million in 2019. Similarly, AQM has seen its funding drop from $91 million to between $5 million and $10 million since 2020.
It is undeniable that the degradation of the financial capacity of these terrorist groups is essential to preserve national, regional and global security interests. Measures aimed at countering the financing of terrorism play a crucial role in disrupting the financial flows that fuel their operations and networks, thereby weakening their operational capabilities.
It is pertinent to emphasize that the fight against the financing of terrorism is a major strategic issue, because without adequate financial support, terrorist groups find themselves considerably limited in their actions. The need to continue to strengthen these efforts remains paramount, not only for national defense, but also for the overall security environment in which we all operate.
Terrorist activities have demonstrated impressive financial capacity for years, generating billions of dollars from a variety of sources. In 2014, ISIS derived its revenues from oil smelting, extortion, taxation, and kidnapping for ransom. This considerable financial windfall has allowed ISIS to fund not only its own operations, but also to support other extremist groups, particularly in Africa..
In his lecture, Ambassador Abdullahi Shehu, former Director General of the Intergovernmental Action Group against Money Laundering in ECOWAS, stressed that combating terrorism involves addressing the sources of financing of terrorist activities. The Global Terrorism Index (GTI) for the year 2024 reveals that the Sahel region is the most affected in the world, with a 22% increase in terrorism-related deaths in 2023, totaling 8,352 victims.
It is clear that the Sahel accounts for almost half of all terrorism-related deaths and 26% of attacks in 2023. Four of the ten countries most affected by terrorism are in the Sahel region, highlighting the considerable challenges Nigeria faces in tracking the financing of terrorism. These challenges include porous borders, weak border management, the predominance of cash transactions, financial exclusion, as well as the informality of economic systems.
Furthermore, limited financial investigation capacities, compared to criminal investigations, hamper efforts to combat terrorist financing in Nigeria. However, recent progress has been noted in tracking, prosecuting and convicting terrorist financiers, underscoring a growing political will to tackle this scourge.
In conclusion, combating terrorist financing remains a daunting challenge that requires enhanced international cooperation, effective enforcement measures and continued vigilance. Addressing the sources of financing of terrorist groups can undermine their capabilities and ensure national and international security. The fight against terrorism must be waged on all fronts, including financing, to curb the deadly and destabilizing activities of these organizations.