POS operators facilitating ransom payments to terrorists – NCTC

The National Counter Terrorism Centre (NCTC) has raised concern that point-of-sale (POS) operators are being used to facilitate ransom payments to terrorists and other criminal networks in Nigeria.

The National Coordinator of the centre, Adamu Laka, disclosed this on Tuesday during an end-of-the-year media interaction in Abuja. He said investigations into kidnapping and terrorism-related cases revealed that ransom payments are often routed through POS terminals, making it easier for criminals to access funds while evading detection.

Mr Laka, a major general in the Nigerian Army, spoke against the backdrop of a resurgence in kidnapping-for-ransom, particularly in northern parts of the country. Terror groups have intensified attacks on soft targets such as schoolchildren and worshippers. In November, two separate school abductions were recorded in Kebbi and Niger states, although the victims were later released.

Although the Nigerian government officially discourages the payment of ransom, families of abducted persons often make payments to secure the release of their loved ones. There have also been public allegations that the government pays ransom in some cases, claims that authorities have consistently denied.

According to Mr Laka, terrorists frequently provide victims’ families with POS account details, enabling them to transfer ransom funds directly to POS operators. He explained that the money is subsequently withdrawn by members of the criminal networks. He said the government is taking steps to address the situation.

Nigeria’s POS ecosystem has expanded rapidly in recent years due to limited banking access in rural areas and financial inclusion policies of the Central Bank of Nigeria (CBN). Thousands of agents now offer cash withdrawals, transfers and bill payment services on behalf of banks and fintech companies, often operating in informal settings with minimal oversight. While this has improved access to financial services, security officials say it has also created vulnerabilities that criminal groups are exploiting.

The CBN has issued several guidelines regulating POS and agent banking operations, including Know Your Customer requirements, transaction limits, agent registration and mandatory reporting of suspicious transactions to the Nigerian Financial Intelligence Unit. POS agents are expected to operate within approved thresholds, maintain verifiable identities and keep proper transaction records, while financial institutions are required to flag unusual cash movements and freeze accounts linked to criminal activity. However, enforcement is said to be uneven, especially in rural areas where regulatory oversight is weaker.

Mr Laka also urged media organisations to exercise caution in reporting sensitive security matters, warning that premature disclosure of operational details could compromise investigations and endanger lives. While commending journalists for their professionalism, he said responsible reporting has helped counter extremist propaganda, strengthen public confidence and support government efforts against terrorism and violent extremism.

He cautioned that in the age of instant news and digital virality, the line between public interest and national security can easily become blurred. He stressed that intelligence-led operations and ongoing investigations are highly sensitive and that detailed or premature reporting could inadvertently aid criminal groups that actively exploit open-source information.

According to him, the centre is not advocating censorship but encouraging responsible judgment in determining what information should be reported immediately and what should be handled with restraint in the interest of national security. He added that press freedom and national security are complementary pillars of a stable democracy and must be carefully balanced.

Mr Laka said the NCTC remains committed to regular engagement with the media through briefings and structured information sharing to ensure reporting is accurate and does not jeopardise security operations. He warned that premature disclosure could alert suspects, compromise investigations or put operatives at risk.

Addressing broader security concerns, he noted that terrorist and organised criminal groups are constantly evolving their tactics, requiring stronger intelligence coordination, strategic communication and national cohesion. He said the centre is working with other security agencies to counter cross-border threats, particularly those emanating from the Sahel region.

He identified groups such as Lakurawa and Jama’at Nusrat al-Islam wal-Muslimin as having infiltrated parts of Nigeria’s North-west and North-central regions, worsening insecurity in border communities. He also expressed concern over the use of social media platforms by terrorists to spread propaganda, noting that several extremist-linked accounts have been taken down following engagements with platforms including TikTok, Instagram, Snapchat, Facebook and X.

In his closing remarks, Mr Laka described the media as a critical partner in the fight against terrorism and urged journalists to deny extremist groups the attention they seek while reassuring citizens of the government’s resolve and capacity to protect lives and property.