Countering Boko Haram’s war economy: A strategic imperative for Nigeria’s national security (2)

By: Prof. Isaac Olawale Albert

Paradoxes in Nigeria’s counter-terrorism approach

Three recent incidents illustrate the paradoxes in Nigeria’s approach to terrorism financing. First, the National Bureau of Statistics published findings revealing the enormous scale of ransom payments to terrorist organisations, only to remove this report from its website after questioning by the State Security Service. This incident raises questions about transparency and information management in counter-terrorism efforts.

Second, the Chief of Defence Staff’s request for United Nations assistance in investigating Boko Haram funding sources appears to overlook existing international support mechanisms and domestic capabilities. Nigeria already participates in international frameworks including UN Security Council Resolution 1373 (2001), which requires countries to prevent and suppress terrorist financing, and Resolution 1267 (1999), which establishes sanctions against individuals and entities associated with terrorism.

Third, allegations by a US Congressman that USAID was funding terrorist groups, including Boko Haram, created confusion despite previous investigations finding no evidence to support such claims. The response to these allegations, including a House of Representatives committee investigation with limited public disclosure, illustrates challenges in managing counter-terrorism narratives.

These incidents reflect not just operational challenges but also communication and transparency issues that can undermine public confidence in counter-terrorism efforts. They suggest opportunities for improvement in how Nigeria manages information, coordinates with international partners, and communicates about counter-terrorism financing.

Strengthening Nigeria’s counter-terrorism financing strategy

Nigeria’s path forward requires building on existing strengths, while addressing identified weaknesses in its counter-terrorism financing approach. Rather than creating new laws or institutions, the focus should be on enhancing the effectiveness of existing frameworks through improved coordination, implementation, and community engagement.

Banking sector regulation needs strengthening to prevent the use of formal financial institutions for terrorist financing. This requires not just regulatory frameworks but also technological capabilities to monitor transactions and identify suspicious activities. Non-banking financial institutions, particularly bureaux de change and money transfer operators, require similar scrutiny given their vulnerability to exploitation by terrorist networks.

International collaboration represents another critical dimension. Beyond requesting UN assistance, Nigeria can more actively participate in regional and global counter-terrorism financing initiatives. The country’s leadership in funding the Multinational Joint Task Force (MNJTF) demonstrates capacity for regional coordination that could be extended to financial intelligence sharing and joint operations targeting terrorist financing networks.

Community resilience and local governance

A comprehensive approach must address the vulnerabilities that make communities susceptible to terrorist economic exploitation. Governor Babagana Zulum’s strategies in Borno State provide instructive examples — addressing economic, social, political, and environmental challenges that create conditions where terrorist organisations can establish alternative governance and economic systems.

Community resilience requires strengthening local governance structures, enhancing economic opportunities, and rebuilding social cohesion in affected areas. Traditional authorities, local government systems, and community-based organisations play essential roles in this process. Their proximity to affected populations makes them crucial partners in identifying and disrupting terrorist financing mechanisms at the local level.

Nigeria can draw valuable lessons from both domestic successes and international experiences in countering terrorist financing. The recent neutralisation of Eastern Security Network (ESN) terrorist kingpins in Imo State demonstrates how coordinated intelligence-led operations can disrupt terrorist networks and recover their assets. This operation, led by the Nigeria Police Force, resulted in the seizure of weapons, ammunition, improvised explosive devices, communication equipment, and operational vehicles — key resources that support terrorist activities.

Internationally, countries like Algeria have implemented reconciliation programmes through their Charter for Peace and National Reconciliation, which combine security measures with social reintegration strategies. Singapore has developed comprehensive approaches that integrate security operations with community engagement and religious education. Indonesia, facing similar challenges with terrorist organisations, has created deradicalisation programmes that address both ideological and economic dimensions of terrorism.

Regional collaboration offers another promising avenue. The GIABA assessment of counter-terrorist financing capacities in West Africa provides a framework for strengthened regional coordination. By sharing financial intelligence, harmonising legal frameworks, and conducting joint operations, countries in the region can more effectively address cross-border dimensions of terrorist financing.

In summary, the evolution of Boko Haram from an ideologically driven movement to a profit-oriented enterprise necessitates a corresponding evolution in Nigeria’s counter-terrorism strategy. While military operations remain essential, they must be complemented by sophisticated measures to disrupt terrorist financing networks and address the economic dimensions of extremism.

Nigeria possesses the legal frameworks, institutional infrastructure, and strategic vision necessary to counter terrorist financing effectively. The National Counter Terrorism Strategy and related legislation provide solid foundations for these efforts. What remains is strengthening implementation, enhancing coordination, and ensuring consistent application of existing capabilities.

The experiences of Borno State offer valuable lessons in addressing the socio-economic conditions that facilitate terrorist exploitation. By combining security operations with economic development, governance improvements, and community engagement, states can create environments resistant to terrorist influence.

Nigeria stands at a critical juncture in its counter-terrorism journey. By recognising the economic dimensions of terrorism and deploying comprehensive strategies to address them, the country can make significant progress toward lasting peace and security. This approach requires not just government action but the engagement of civil society, private sector, and international partners in a coordinated effort to deny terrorists the financial resources they require to operate. Only through such comprehensive approaches can Nigeria effectively counter the war economy that sustains Boko Haram and similar organizations, paving the way for sustainable peace and development in affected regions.

Source: Business Day