Livestock, betting, crypto exchange, spare parts businesses, fintech platforms, wire transfer and bank accounts are among major channels used to move proceeds of Kidnapping for Ransom (KFR) in and out of the country, the Nigeria Financial Intelligence Unit (NFIU) has said in its latest report.
The NFIU also said bank accounts of kidnap victims are reportedly used by kidnappers to receive ransom, which is withdrawn in small tranches from Point of Sale (POS) operators. The victim is killed thereafter.
The report titled “Typologies of Money Laundering Through Kidnapping for Ransom in Nigeria” offers a grim assessment of how KFR is not only threatening public safety but also undermining Nigeria’s financial security, governance, and economic stability.
Describing KFR as a critical driver of organised crime, the report noted that the surge in abductions is closely tied to broader criminal networks engaged in money laundering, terrorism financing, human trafficking, and drug smuggling.
Detailing its investigation, NFIU said, “A betting platform, Platform X, filed a Suspicious Transaction Report (STR) with NFIU concerning a client identified as ‘Customer’. Customer A is a 24-year-old male residing in Bwari, Abuja. He received N351,000 in his betting wallet, which was ransom money paid by the families of a kidnap victim. The payment was instructed to be deposited into the betting wallet. After receiving the funds, Customer A attempted to transfer the money to his bank account at Bank A, but the platform declined the transaction.
“The NFIU reviewed the STR and forwarded the intelligence report to a law enforcement agency for further investigation. A law enforcement agency requested information from NFIU on a subject herein referred to as Mr A, who is said to have received a ransom for a kidnap victim via his account on a fintech platform A.
“Upon receiving the funds in his fintech account, Mr A transferred the funds to some individuals through conventional bank accounts in smaller tranches.”
The report further revealed that since 2019, there have been 735 mass abductions in Nigeria, with 3,620 people abducted in 582 kidnapping cases between July 2022 and June 2023. It is estimated that N5 billion ($3,878,390) was paid as ransom during this period.
While highlighting Kaduna, Zamfara, Katsina, Niger, Kogi, Borno, Ondo, Rivers, Delta, Imo and Edo as most vulnerable states for kidnapping for ransom, the report noted that the most vulnerable routes for kidnapping for ransom in and out of Nigeria were Zamfara/Sokoto/Gusau road, Katsina/Birnin-Kebbi road, Kaduna/Abuja Road, Niger/Abuja and Abuja/Lokoja highway in the Northern Region, while in the South, Benin/Lagos highway, Port Harcourt/Owerri Road, Enugu/Onitsha road, Ibadan-Lagos road and Ibadan-Ilorin highway.
Based on DIA experiences, the report added that the mode of transporting hostages in and out of Nigeria is motorcycles through densely forested areas and the use of vehicles through forested areas that provide cover and concealment.
Emphasising that Nigeria had strong laws at both federal and state levels, along with counter-terrorism and money laundering regulations, to address the issue of kidnapping for ransom, NFIU warns that the increasing frequency, complexity, and transnational nature of kidnapping operations signal a shift into more dangerous territory.
Key recommendations include strengthening financial oversight through tighter regulation and improved enforcement of Know-Your-Customer (KYC) protocols and expanding the use of Artificial Intelligence (AI) to detect suspicious financial transactions potentially linked to ransom payments.
Enhancing the efficiency of Suspicious Transaction Reporting (STR) mechanisms; Enforcing SIM card registration laws more rigorously to reduce anonymity in criminal communication networks; Boosting inter-agency collaboration between financial intelligence units, security forces, and regulatory authorities.
