Nigerian Jihadists and Bandits Exploit Emerging Fintech

This article examines how jihadist organizations and armed bandit groups in Nigeria are exploiting the country’s rapidly expanding financial technology ecosystem to facilitate illicit financial activities. Drawing on findings from the Nigerian Financial Intelligence Unit (NFIU) and other open-source assessments, it explores how the Islamic State–West Africa Province (ISWAP) and criminal networks increasingly use mobile-money platforms, Point of Sale (PoS) agents, and digital wallets to collect revenues, process ransom payments, and transfer funds across regions. The analysis highlights how weak Know Your Customer (KYC) enforcement, fragmented regulatory oversight, and limited financial infrastructure in conflict-affected communities create opportunities for illicit transactions. It further identifies the growing convergence between insurgent financing and organized criminal economies as digital payment systems become more accessible. The article argues that while financial technology has expanded financial inclusion in Nigeria, its exploitation by armed groups presents significant challenges for counterterrorism financing, financial intelligence, and national security governance.