E-Financial
SEC, NFIU to Collaborate to Check Money Laundering, Terrorism Financing
The Securities and Exchange Commission (SEC) and the Nigerian Financial Intelligence Unit (NFIU) of the Economic and Financial Crimes Commission (EFCC) have pledged stronger collaboration to fight illicit financial flows within the Nigerian capital market.
Mounir Gwarzo, Ag. director general of SEC disclosed this when he received the Director of NFIU, Usani Francis in his office in Abuja on Tuesday. He also expressed the Commission’s readiness to work with all relevant Government Agencies and Stakeholders to ensure strict enforcement of all applicable laws against money laundering or financing of terrorism.
Gwarzo said the need for collaboration with all relevant stakeholders has become necessary given the important role the SEC plays in the financial system and the need to effectively police the market and ensure that activities are properly scrutinized to enhance integrity and confidence in the Nigerian Financial System.
According to Gwarzo, “SEC considers compliance to anti-money laundering laws as an important factor in appraising capital market operators. From the onset, having a knowledgeable compliance officer is a prerequisite for registration of a firm that seeks to operate in the Nigerian capital market.
Secondly, the compliance officer must prove during interviews to be very conversant with the anti-money laundering and counter financing of terrorism (AML/CFT) framework”.
Disclosing that the SEC has facilitated training for NFIU officers in the past, the Ag. DG indicated the Commission’s willingness to work with the NFIU to further build capacity through workshops or training exercises for compliance officers. He also noted that the responsibility of a compliance officer goes beyond knowledge of the relevant laws that govern their operations. “It is important that we collaborate to organize workshops for market operators especially the fund managers and the stockbrokers that deal with collection of money on the latest developments in the AML/CFT regime” Gwarzo stated.
Speaking earlier, Usani Francis, Director NFIU, said since they co-ordinate all the activities that have to do with money laundering and terrorism financing in Nigeria, the Unit is enjoined to cooperate with all Stakeholder Agencies to carry out its duties effectively.
He said the need to increase the level of collaboration has become necessary given the fact that terrorism can only thrive when the terrorist have access to funds and it has been identified that terrorist now use other sources to move money besides the traditional Financial Institutions. “Even money laundering, we have identified that they use other sectors of the economy and we see the capital market as a vulnerable sector that they could use to acquire funds for their operations and hence the need for us to collaborate with the SEC to ensure the capital market remains free from money laundering activities” Usani added.
The naira appreciated to N1,600 per dollar in the parallel market at the close of trading hours on Monday, strengthening from N1,610 per dollar recorded over the weekend.
Similarly, the naira saw a slight gain in the Nigerian Foreign Exchange Market (NFEM), trading at N1,605 per dollar compared to N1,606 last Friday, according to data from the Central Bank of Nigeria (CBN). This represents a marginal N1 appreciation.
As a result, the gap between the parallel market and official exchange rate widened slightly to N5 per dollar, up from N4 over the weekend.
Central Bank of Nigeria (CBN) spent N315.18bn on currency issue expenses in 2024, marking a sharp increase of 306 per cent compared to N77.67bn recorded in 2023, the apex bank’s audited financial statement for the year has shown.
Currency issue expenses cover the printing, processing, distribution, and disposal of banknotes.
The latest figures reveal that the CBN’s cost of managing physical cash spiralled dramatically during the year under review, as Nigeria grappled with lingering cash shortages and disruptions in the money supply chain.
The surge in expenditure came as the country continued to deal with the effects of the naira redesign policy introduced in late 2022.
Despite efforts to stabilise cash circulation throughout 2023, Nigerians still faced queues at ATMs and difficulties in accessing cash in early and late 2024.
Faced with mounting public outcry, the CBN deployed several emergency measures to address the crisis.
Deposit Money Banks were directed to ensure consistent ATM loading and rural cash distribution, while the Bank also launched public hotlines for citizens to report cash scarcity incidents.
Also, the CBN ramped up enforcement efforts, including deploying monitoring teams, issuing sanctions against non-compliant banks, and mandating improved cash distribution.
PalmPay, a full-service digital bank, has reaffirmed its dedication to advancing the future of payments in Nigeria by promoting the widespread adoption of contactless-enabled payment terminals.
This was made known during the recently concluded BusinessDay Future of Payment Conference, themed “Fintech Evolution: Gateway to Payments.” In his welcome address, BusinessDay Publisher, Frank Aigbogun, emphasized that the next phase of fintech innovation must be driven not only by speed, safety, and simplicity but also by trust, inclusion, and accessibility to ensure broad-based impact across all segments of society.
Talking about PalmPay’s impact in the panel session titled “The Next Wave of Digital Payments: Trends and Innovation,” Ifeanyi Uzoka, Senior Business Development Manager at PalmPay, discussed the evolving landscape of digital payments in Nigeria.
He noted that while regulatory frameworks have supported the introduction of contactless payments, the high level of cash dependency remains a key barrier to widespread adoption.
“At PalmPay, financial inclusion is central to everything we do,” Uzoka stated. “To support this mission, we’ve launched contactless-enabled debit and premium cards, ensuring our users have access to convenient and secure payment experiences. We also understand that trust is critical, which is why all contactless transactions on PalmPay’s platform include an additional layer of authentication for enhanced security.”
PalmPay continues to lead innovation in Nigeria’s digital finance ecosystem by delivering secure, user-friendly, and future-ready solutions. The company’s recently launched debit and premium cards in partnership with Verve are now serving its growing base of over 35 million users nationwide.
This move into contactless payments underscores PalmPay’s alignment with global payment trends and its ongoing commitment to building a more inclusive and digitally empowered economy.
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