FG Raises Alarm Over Terrorists Using PoS Terminals to Collect Ransom Payments
The Federal Government has raised fresh concerns over the evolving methods being adopted by terrorist and criminal groups in Nigeria, revealing that Point of Sale (PoS) terminals are now being exploited as channels for collecting ransom payments and moving illicit funds. The disclosure underscores the growing sophistication of terror financing methods and the challenges facing security and financial regulators in tracking cash-based transactions.
Speaking during the 2025 end-of-the-year press briefing at the headquarters of the National Counter Terrorism Centre (NCTC) in Abuja, the Director-General of the Centre, Major-General Adamu Laka, said ransom payments remain one of the most significant sources of funding for terrorist activities in the country. According to him, kidnappers and terrorist groups have increasingly turned to PoS operators to receive ransom payments in cash, making financial trails more difficult to follow.
Laka explained that in many kidnapping cases, families of victims are instructed to transfer ransom payments to bank accounts linked to PoS operators. Once the funds hit those accounts, the operators dispense cash to the criminals, effectively breaking the electronic trail that security agencies rely on for investigations.
“In several cases, when you track a ransom payment, the account it leads to belongs to a PoS operator,” Laka said. “The kidnappers provide the PoS number, the money is transferred, and they go to collect the cash. From there, it becomes more difficult to trace the final recipients.”
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The NCTC Director-General noted that while security agencies have intensified efforts to monitor ransom payments and disrupt terror financing networks, operational details cannot be fully disclosed to the public for security reasons. He, however, confirmed that arrests and prosecutions have been recorded in connection with terrorism financing, including cases linked to ransom payments.
According to Laka, asset recovery and seizures form a key part of Nigeria’s compliance with international anti-money laundering and counter-terrorism financing standards. He stressed that the government remains committed to meeting its obligations under global financial regulations, despite the challenges posed by cash-heavy and informal financial channels.
Beyond financial transactions, the Federal Government also expressed concern over the use of social media platforms by terrorist groups to promote their activities, communicate with supporters, and raise funds. Laka identified platforms such as TikTok, Facebook, Instagram, Snapchat, and X as being exploited by extremist groups to publicise operations, showcase looted items, and spread propaganda.
He revealed that Nigerian security agencies are actively engaging major social media companies to identify and remove accounts and content that pose threats to national security. According to him, while social media platforms are commercial entities focused on growing their user base, government agencies regularly engage them on the broader security implications of allowing such content to remain online.
“These platforms are businesses, but when we explain the national security implications of certain posts or accounts, they cooperate with us, and such content is taken down,” Laka said.
The NCTC boss added that terrorist tactics continue to evolve, including the use of aliases, disposable phone numbers, and unverified or fake online accounts to evade detection. As a result, security agencies are constantly adapting their strategies and capabilities to stay ahead of these developments.
The government’s disclosure has sparked public debate, with many Nigerians questioning how registered PoS operators and regulated financial channels could be used for criminal activities without swift detection. Others have called for stricter regulation of PoS operations, improved training and sensitisation of operators, and tighter collaboration between financial institutions, fintech companies, and security agencies.
Despite the criticism, the Federal Government maintains that addressing terror financing requires a balance between effective regulation, intelligence-led enforcement, and the protection of legitimate financial activities relied upon by millions of Nigerians. Authorities say ongoing efforts to strengthen financial oversight, enhance digital monitoring, and improve inter-agency cooperation are critical to cutting off funding sources for terrorists and criminal networks.