Ola Olukoyede, Executive Chairman of the Economic and Financial Crimes Commission, has called on the Oyo State Government to enact a law against terrorism financing.
The appeal places state-level legislative action within Nigeria's broader anti-money laundering and counter-terrorism financing framework. Federal statutes, including the Terrorism (Prevention and Prohibition) Act and the Money Laundering (Prevention and Prohibition) Act, establish the core legal regime. A dedicated state law could strengthen local enforcement capacity, improve information sharing among security and financial regulators, and create additional oversight obligations within Oyo State's jurisdiction.
For banks, other financial institutions, designated non-financial businesses and professional service firms operating in the state, the proposal carries potential compliance implications. Depending on the scope of any eventual legislation, covered entities may need to review customer due diligence procedures, enhance transaction monitoring, and tighten suspicious transaction reporting to reflect new state-level requirements.
The appeal also highlights Nigeria's obligations under international standards promoted by the Financial Action Task Force and other bodies. Weak or fragmented legal responses to terrorism financing can expose jurisdictions to heightened international scrutiny, which may affect correspondent banking relationships, cross-border payments and investor confidence.
The EFCC has previously emphasised the importance of subnational cooperation in financial crime enforcement. State laws can complement federal enforcement by addressing local vulnerabilities, including real estate transactions, cash-intensive businesses, charitable organisations and informal financial channels that may be exploited for illicit fund movement.
Oyo State has not publicly indicated whether it will take up the proposal. If pursued, the measure would need to pass through drafting, stakeholder consultation, public hearings and approval by the state House of Assembly before it could take effect. Businesses and compliance teams should monitor the legislative process for developments that could create new obligations or reporting duties.
