Nigerian Banks Flag 82,000 Suspicious Transactions in 2024

ABUJA — Nigerian banks and financial technology companies flagged over 82,000 suspicious transactions to the Nigerian Financial Intelligence Unit in 2024, according to a new report released by the agency. The figure represents a significant increase from previous years and reflects the growing intensity of anti-money laundering efforts across Nigeria’s financial sector.

The NFIU report, published on Saturday, attributed the increase to improved compliance systems, better staff training, and the deployment of artificial intelligence tools to detect unusual transaction patterns. Banks are now required under CBN regulations to automatically flag transactions that meet certain risk criteria.

NFIU Director General Hafsat Bakari said the increase in suspicious transaction reports is a positive development. She said more reports mean more opportunities for law enforcement to investigate potential financial crime, including money laundering, terrorism financing, and fraud.

“When financial institutions report suspicious transactions, they are performing a critical public service. This data helps us build cases, identify criminal networks, and protect the integrity of Nigeria’s financial system,” Bakari said.

What the Data Shows

The 82,000 flagged transactions came from commercial banks, microfinance banks, fintech platforms, insurance companies, and other licensed financial institutions. Commercial banks contributed the largest share of reports, followed by fintech companies whose rapid growth has expanded their transaction volumes significantly.

The report identified several sectors with elevated suspicious transaction activity. Real estate, cryptocurrency exchanges, and cross-border payment services were among the areas where unusual patterns were most frequently detected. These sectors have long been identified as high-risk channels for money laundering in Nigeria.

Furthermore, the NFIU said the June 10 CBN cybersecurity deadline for banks is directly connected to the anti-money laundering framework. Stronger digital security reduces the risk of fraudulent transactions slipping through detection systems unnoticed. Banks that miss the deadline could inadvertently create vulnerabilities in their financial crime detection infrastructure.

Challenges Remain

Despite the improvement in suspicious transaction reporting, Nigeria remains on the Financial Action Task Force grey list. The FATF grey-listed Nigeria in 2023 over deficiencies in its anti-money laundering and counter-terrorism financing framework. Nigeria is working toward removal from the list, but progress has been slower than officials hoped.

Law enforcement’s ability to act on NFIU referrals remains a limiting factor. Even when suspicious transactions are properly reported, investigations and prosecutions require dedicated resources, trained financial crime investigators, and an efficient court system. All three remain constrained in Nigeria.

The NFIU said it will publish quarterly updates on suspicious transaction reporting going forward. It also called on smaller financial institutions, particularly microfinance banks and rural credit cooperatives, to strengthen their transaction monitoring systems before the CBN’s June deadline.