The Economic and Financial Crimes Commission (EFCC) has urged stronger collaboration among African governments, regulators, and civil society groups to tackle terrorist financing without stifling legitimate non-profit activities.
Speaking at the 3rd Africa High-Level Civil Society Anti-Money Laundering and Counter-Terrorist Financing Conference in Abuja, EFCC Chairman Olanipekun Olukoyede said efforts must focus on risk-based regulation rather than blanket restrictions on non-profit organizations (NPOs).
Represented by Harry Erin of the Special Control Unit against Money Laundering (SCUML), Olukoyede noted that terrorist financing, illicit financial flows, and organized crime remain major threats to Africa’s stability and development.
He explained that Financial Action Task Force (FATF) Recommendation 8 requires countries to identify only vulnerable organizations while allowing legitimate charities to operate freely. He stressed that trust, transparency, and collaboration are key to effective implementation.
According to him, Nigeria’s coordinated efforts involving the EFCC, SCUML, the Nigerian Financial Intelligence Unit, and other stakeholders enabled a comprehensive risk assessment of the non-profit sector, leading to more targeted regulation and reduced burdens on genuine organizations.
Executive Director of Spaces for Change, Victoria Ibezim-Ohaeri, said sustained engagement between regulators and civil society has improved cooperation and led to key reforms, including removing NGOs from the list of reporting entities under Nigeria’s anti-money laundering law.
She added that Nigeria’s approach has earned international recognition and is now being adopted by countries such as Ghana, The Gambia, Togo, and Burkina Faso.
Meanwhile, UN Special Rapporteur Ben Saul praised Nigeria’s compliance with FATF standards but warned against excessive regulation of civil society. He said overregulation can divert resources from humanitarian work and weaken efforts to prevent extremism.
Experts at the conference also highlighted the scale of illicit financial flows in Africa, estimated at $88 billion annually, and called for balanced policies that safeguard both security and human rights.
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