TERRORISM FINANCING IN NIGERIA: AN EXAMINATION OF FUNDING SOURCE AND DISTRUPTION SOURCES

Research Problem: Nigeria continues to experience terrorist financing despite the implementation of repeated counterterrorism financing (CTF) policies. This paradox highlights systemic institutional and regulatory weaknesses that allow financing networks to thrive. Previous studies often catalogue funding channels but rarely explain how these persist within Nigeria's governance and economic context. Methods/Theory:The study employed a secondary data approach, relying on reports from the Central Bank of Nigeria (CBN), the Economic and Financial Crimes Commission (EFCC), the Nigerian Financial Intelligence Unit (NFIU), and international bodies. Situational Crime Prevention (SCP) theory framed the analysis, showing how offenders adapt to weak guardianship and exploit poorly regulated opportunities. Results:This study revealed that kidnapping-for-ransom remains the dominant terrorist financing channel, sustained by Nigeria's largely cash-based economy despite policy restrictions. Conclusion:Terrorism financing in Nigeria persists not only through criminal innovation but also because of governance failures. Weak oversight of financial transactions and resource sectors enables terrorists to build sustainable revenue streams. Key Contribution to Knowledge: This study moves beyond descriptive accounts of terrorist funding by embedding the issue within SCP. It demonstrates that terrorism financing in Nigeria is shaped more by regulatory lapses and governance gaps than by mere criminal tactics, providing context-specific insights distinct from those in East African and Middle Eastern cases. Recommendation:The government should strictly enforce cash transaction limits, ensure bulk withdrawal reporting in rural banks, and formalize artisanal mining through licensed cooperatives and state-controlled mineral markets.