L-R, Xolisile Khonyile, chair, United for Wild life, the DCEO of NFIU, Hafsat Abubakar Bakari, Minister of Interior, Olubunmi Tunji-Ojo, Ece Kugu of London Stock exchange and Che Sidanius, head, global Financial Risk, LSEG, at the roundtable discussion jointly organised by the NFIU and London Stock Exchange Group (LSEG), with the theme “Public Private Partnerships (PPPs) as a Platform to support Collaboration Among AML/CFT/CPF Stakeholders”
Nigeria has made significant progress in its fight against money laundering and terrorist financing, achieving upgrades in five key recommendations and has become compliant with 37 out of the 40 the Financial Action Task Force (FATF) recommendations.
Chief Executive Officer of the Nigerian Financial Intelligence Unit (NFIU), Hafsat Bakari, disclosed this at the opening of the roundtable discussion jointly organised by the agency and the London Stock Exchange Group (LSEG), with the theme “Public Private Partnerships (PPPs) as a Platform to support Collaboration Among AML/CFT/CPF Stakeholders.
She said this advancement was highlighted during the 42nd GIABA Technical Commission and Plenary Meeting held from November 17 to 23, 2024, in Freetown, Sierra Leone.
Bakari commended the collaborative efforts of various agencies involved in this initiative. “I would like to commend all the agencies, especially those in the inter-ministerial committee, for the tremendous work we have done to get Nigeria off the grey list,” she stated.
As of now, Nigeria is compliant or largely compliant with 37 out of the 40 FATF recommendations. Bakari described this as a “phenomenal achievement,” noting that even some Western countries struggle to meet such standards. She expressed confidence that Nigeria aims to achieve full compliance by next year, stating, “We are aiming for 40-40.”
She emphasised the urgency of the efforts, stating: “We are determined to address the remaining deficiencies before we conclude this round of evaluations.”
Nigeria has faced grey listing three times, a situation Bakari believes is enough for a country.
“We have been in the gray list three times, and I think that is enough for a country. So hopefully, after the next round, we don’t expect to ever be in the grey list again. And that is what we are working on.”
Bakari, at the dialogue, highlighted the growing complexity of financial crimes that threaten both national and global security. “Nigeria and the global community face an interconnected web of financial crimes that undermine our economic integrity and facilitate the spread of illicit goods,” she stated.
She emphasised that these threats exploit regulatory gaps and hinder effective collaboration among stakeholders.
The NFIU CEO also noted that no single organization can tackle these challenges alone, stressing that cooperation is essential for success. “Public-Private Partnerships provide a structured platform for pooling resources, intelligence, and technologies, enabling stakeholders to align efforts and share actionable insights,” she explained.
She gave a notable example of successful collaboration is Nigeria’s Bank Verification Number (BVN) initiative, which has significantly reduced identity fraud and enhanced transparency in financial transactions.
Bakari urged participants to explore innovative approaches such as shared Know Your Customer (KYC) systems and financial intelligence sharing partnerships to further strengthen the nation’s anti-money laundering framework.
Additionally, Bakari highlighted ongoing efforts to combat wildlife crimes, which are increasingly recognized as a significant predicate offense for money laundering. Under the leadership of the Ministry of Environment, Nigeria has united various sectors to tackle wildlife trafficking networks that fund criminal enterprises.
Bakari reiterated that fighting financial crime is a collective responsibility. “It is possible to create a sustainable system that not only prevents future crimes but also enhances our efforts in protecting the future of our country.”
Minister of Interior, Olubunmi Tunji-Ojo, emphasised the critical importance of partnerships in addressing financial crimes.
“The key term for me is not simply ‘public’ or ‘private,’ but ‘partnership’—a collaboration that embodies interdependency and unification based on shared values,” Tunji-Ojo stated. He underscored that Nigeria operates within a mixed economy, where both public and private sectors must work symbiotically to foster growth and development.
He urged promoters of Public-Private Partnerships (PPPs) to ensure thorough vetting by the NFIU to prevent illicit profit-making from the system.
According to him, this is to ensure that funds generated from such partnerships are properly invested back into the social system, rather than being misappropriated for personal gain.
“We want investment, but we want clean investment. We want investment with trails. We want investment, but we want investment that we as a people can be proud of, to be legitimate.”
Tunji-Ojo noted that recognising this interconnectedness is essential for Nigeria’s progress. “We must shift from viewing our economic interactions as parasitic to seeing them as mutually beneficial,” he added.
He further highlighted the significance of public-public partnerships in enhancing Nigeria’s capabilities. “Our nation has immense potential, but it can only be realized through interdependent relationships and a commitment to shared values that unite us rather than divide us,” he said.
Tunji-Ojo envisioned a system where distinct entities, such as the insurance sector, NFIU, ICPC, and CAC, work together with shared values and common goals. “I want to see a scenario where information flows freely among these agencies, creating a transparent environment,” he stated.
He acknowledged the challenges posed by financial crimes, emphasising that while criminals leave traces, these “footprints” can fade. “No crime is executed without leaving loose ends,” he noted, stressing the need for collective action.
The minister highlighted the role of advanced technologies like artificial intelligence in facilitating real-time monitoring of financial transactions. “When we collaborate and share information seamlessly, it becomes easier to trace criminal activities,” he asserted. His remarks underscored a commitment to fostering inter-agency cooperation as a vital strategy in Nigeria’s fight against financial crimes.
Speaking on Nigeria’s contactless passport renewal solution, which went live in Canada on November 1, 2024, developed by two Nigerian software companies, he highlighted the country’s pioneering efforts in passport administration during a discussion with UK home security officials.
Tunji-Ojo explained that the initiative was designed to eliminate the need for Nigerians living in distant locations, such as British Columbia, to travel long distances for passport services. “It doesn’t make sense for someone to fly six to eight hours just to apply for a passport,” he stated, noting that such travel often leads to corruption due to scarcity and demand.
The new system allows applicants to complete their passport applications from home using a biometric solution that interfaces with various databases, including Interpol. “In just two weeks, our app will be available on Apple iOS, enabling users to fill out applications and receive their passports via DHL without leaving their homes,” Tunji-Ojo announced.
He emphasised that this achievement would not have been possible without collaboration with agencies like Interpol and the National Identity Management Commission (NIMC). The minister’s remarks reflect Nigeria’s commitment to enhancing service delivery and combating corruption in passport administration.
Director General Infrastructure Concession Regulatory Commission (ICRC), Hanson Ewalefoh, emphasised the critical role of public-private partnerships (PPPs) in addressing Nigeria’s challenges with illicit financial flows, fraud, and cybercrime.
He expressed his enthusiasm for the efforts to support the Renewed Hope agenda of President Bola Tinubu.
“Public-private partnership is essential for saving our country from embarrassment and tackling the financial crimes we face today,” he stated. He urged participants to brainstorm solutions that would enhance Nigeria’s economy and security.
Ewalefoh pointed out that while the public sector often faces criticism for failing to act, the private sector also plays a significant role in facilitating these crimes. “There is no way crime can be committed without the involvement of the private sector,” he noted, emphasising the need for collaboration to create a robust framework for combating financial misconduct.
Director of Operations in Defence Intelligence, Brig. Gen. E.A. Aladeniji, echoed these sentiments, highlighting ongoing collaborations with the NFIU to strengthen investigative efforts. He acknowledged that evolving technology has made it increasingly difficult to trace financial crimes but expressed optimism that forums like this would help stakeholders learn new trends and improve connections in their investigations.
Representatives from the Central Bank of Nigeria (CBN) and the Corporate Affairs Commission also participated in the discussions, reinforcing the importance of inter-agency cooperation in building a more secure financial environment in Nigeria. The event aimed to foster collaboration among public and private entities to effectively combat financial crimes and enhance national security.
