Rear Admiral Olumuyiwa Olotu, Commandant of the National Defence College (NDC), announced a significant reduction in Boko Haram’s financial resources since 2016, attributing this decline to the Nigerian Government’s counter-terrorism initiatives.
Speaking at the Defence and Security Management Course 8 (DSMC 8) Seminar in Abuja, Olotu highlighted the seminar’s theme: “Countering the Financing of Terrorists: Leveraging Global and Regional Institutional Mechanisms for National Action.” The event was organized by the NDC’s Centre for Strategic Research and Studies.
Olotu noted that Boko Haram has operated for nearly 14 years, relying on various funding streams, including local extortion, kidnapping, robbery, foreign donations, and illegal mining. In 2014, the group’s annual revenue was estimated to be between $20 million and $70 million, with approximately $10 million derived from kidnappings. By 2020, this figure had plummeted to less than $10 million annually.
The Commandant emphasized that the financial capabilities of terrorist organizations necessitate unified efforts at international, regional, and national levels to combat terrorist financing through coordinated frameworks and initiatives. He cited that these measures have led to a decline in the financial strength of groups such as ISIS, whose revenues fell from $1-2 billion in 2014 to between $200 and $300 million by 2019. Similarly, financing for Al-Qaeda in the Maghreb (AQM) decreased from $91 million to between $5 and $10 million since 2020.
Olotu stressed the importance of reinforcing and sustaining these efforts to further diminish the financial resources of terrorist organizations, thus protecting national, regional, and global security interests. He asserted that countering terrorism financing is crucial to disrupting the financial flows that support terrorist operations and weaken their capabilities.
He pointed out that without adequate financial support, terrorist groups face significant operational limitations. Addressing this issue is vital not only for national defense but also for enhancing the overall security environment.
Olotu recalled that terrorist organizations have historically demonstrated significant financial capabilities, generating billions from various sources. Research revealed that during its peak in 2014, ISIS amassed between $1 billion and $2 billion annually, primarily from oil smuggling, extortion, taxation, and kidnappings.
Ambassador Abdullahi Shehu, former Director General of the Inter-Governmental Action Group Against Money Laundering in ECOWAS, emphasized that effectively combating terrorism requires addressing the funding sources for these activities. He referenced the Global Terrorism Index (GTI) 2024, which reported that the Sahel region experienced a rise in terrorism-related deaths to 8,352 in 2023, a 22% increase from the previous year. The Sahel accounted for nearly half of all terrorism-related deaths and 26% of attacks in 2023, with four of the ten most affected countries located in the region.
Shehu identified challenges in Nigeria’s efforts to track terrorist financing, including structural issues such as porous borders, cash-dominated transactions, financial exclusion, and informal economic systems. He also noted the need for improved capacity in financial investigations compared to criminal investigations.
He commended Nigeria’s recent initiatives in tracking, prosecuting, and convicting individuals involved in financing terrorism. The seminar featured discussions among participants from various anti-corruption agencies, including the EFCC, ICPC, NFIU, DSS, and DIA.
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