Nigeria’s National Counter Terrorism Centre (NCTC) has raised alarm over the role of some point-of-sale (POS) operators in facilitating ransom payments to terrorists and criminal gangs.
The National Coordinator of the centre, Adamu Laka, disclosed this on Tuesday during an end-of-year media briefing in Abuja.
Mr Laka, a major general in the Nigerian Army, spoke amid a renewed wave of kidnapping-for-ransom, particularly in northern Nigeria, where armed groups have increasingly targeted schools, places of worship and rural communities.
In November alone, two separate school abductions were recorded in Kebbi and Niger states, although all the pupils were later released.
Although the government officially discourages the payment of ransom, families of kidnapped victims often pay to secure the release of their loved ones. Authorities have also repeatedly denied allegations that the government itself pays kidnappers.
According to Mr Laka, investigations into terrorism and kidnapping cases show that ransom payments are increasingly routed through POS terminals.
“In many cases, ransom payments are transferred by victims directly to POS operators whose account details are provided by terrorists,” he said. “The money is then withdrawn by the criminals.”
He said security agencies were already taking steps to address the problem.
Nigeria’s POS sector has expanded rapidly in recent years, especially in rural and semi-urban areas with limited access to banks. Thousands of agents now handle cash withdrawals, transfers and bill payments for banks and fintech companies, often operating in informal settings.
While the system has improved access to financial services, Mr Laka said it has also created loopholes that criminals are exploiting.
The Central Bank of Nigeria (CBN) has issued rules for POS and agent banking operations, including customer identification requirements, transaction limits and mandatory reporting of suspicious transactions to the Nigerian Financial Intelligence Unit.
Under the guidelines, POS agents must register properly, verify customer identities and keep records of transactions. Banks and fintech companies are also required to monitor unusual cash movements and freeze accounts linked to criminal activity.
However, observers say enforcement is uneven, especially in rural areas where oversight is weak.
Mr Laka also said terrorist and criminal groups are changing tactics, requiring stronger intelligence coordination and regional cooperation.
He confirmed that security agencies are working together to counter threats from the Sahel, including infiltration by groups such as Lakurawa and Jama’at Nusrat al-Islam wal-Muslimin (JNIM) into parts of north-west and north-central Nigeria.
He added that terrorists are increasingly using social media to spread propaganda, saying the NCTC has engaged platforms such as TikTok, Facebook, Instagram, Snapchat and X to take down extremist content.