By Mohammed Bello Doka
Religious extremism has remained a persistent threat in Nigeria, with groups like Boko Haram, Islamic State in West Africa Province (ISWAP), and other violent sects continuing to cause havoc. Thousands have been killed, millions displaced, and entire communities destroyed. Despite multiple military operations, the question remains: who is funding these extremist groups? Where do they get the resources to purchase weapons, maintain training camps, and sustain their operations?
This article investigates the financial and ideological backing behind religious extremism in Nigeria, exposing the complex web of local and international sponsors, illicit economic activities, and state failures that enable these groups to thrive.
The Cost of Terrorism: A Multi-Billion Naira Enterprise
Terrorist organizations do not operate in isolation. Their activities—ranging from recruiting and training fighters to acquiring arms and propaganda—require substantial funding. The United Nations Office on Drugs and Crime (UNODC) estimates that terrorist groups spend millions of dollars annually on operations, with a significant portion of these funds coming from illegal activities, foreign sponsors, and local sympathizers.
According to a report by the Global Terrorism Index (GTI), Nigeria has consistently ranked among the top countries affected by terrorism. The report suggests that funding sources for groups like Boko Haram and ISWAP include:
- Foreign Donations from Extremist Networks
- Kidnapping for Ransom
- Illicit Trade and Smuggling
- Extortion and ‘Taxation’ of Local Communities
- Diversion of Public Funds by Corrupt Officials
Foreign Donations: Middle Eastern and North African Links
Several reports have linked Boko Haram and ISWAP to foreign extremist networks in the Middle East and North Africa (MENA) region. According to a 2020 report by the U.S. Department of State, Nigerian terrorist groups have received funding, training, and ideological support from global jihadist organizations such as Al-Qaeda and ISIS.
In 2014, Nigeria’s intelligence agencies arrested three suspected Boko Haram financiers who allegedly received funding from Al-Qaeda in the Islamic Maghreb (AQIM), a terrorist group operating in North Africa. Similarly, a 2022 report from the Financial Times revealed that ISIS has been sending funds to Nigeria through cryptocurrency transactions, making it difficult for authorities to trace the money.
A security analyst, Kabiru Adamu, explains:
“There is undeniable evidence that Nigerian terrorist groups have received financial and logistical support from foreign jihadist movements. The challenge is tracing these transactions and cutting off their supply lines.”
Kidnapping for Ransom: A Lucrative Source of Income
One of the biggest sources of funding for terrorist groups in Nigeria is kidnapping for ransom. Boko Haram, bandits, and ISWAP have turned abductions into a multi-million-dollar industry, targeting schoolchildren, clergy, and politicians.
The infamous Chibok (2014) and Dapchi (2018) kidnappings are clear examples of how ransom payments fuel terrorism. In the Dapchi case, sources claim the Nigerian government paid an undisclosed ransom to secure the release of the kidnapped schoolgirls, except for Leah Sharibu, who was reportedly held back due to her refusal to convert to Islam.
More recently, in December 2023, bandits kidnapped over 100 students in Kaduna and later demanded a ransom of ₦500 million ($1 million USD). Security experts believe that some of these funds eventually make their way into the hands of jihadist groups.
A former Boko Haram commander, Aliyu Maina, who surrendered in 2021, confirmed this in an interview:
“We would capture people, especially government officials or wealthy individuals, and demand a ransom. The money would be used to buy weapons, pay fighters, and maintain our camps.”
Illicit Trade and Smuggling: Funding Terrorism Through Criminal Networks
Boko Haram and ISWAP have been heavily involved in illegal economic activities, particularly smuggling, drug trafficking, and the illegal sale of natural resources.
- Cattle Rustling: In Northern Nigeria, terrorist groups steal thousands of cattle and resell them in neighboring countries like Chad, Cameroon, and Niger.
- Gold and Mineral Smuggling: Reports suggest that militants operate illegal mining operations, particularly in Zamfara and Katsina States, selling gold to international buyers.
- Drug Trafficking: The National Drug Law Enforcement Agency (NDLEA) has confirmed that some terrorist factions are involved in drug smuggling, using proceeds to fund their activities.
Security analyst Mike Ejiofor explains:
“These groups are not just religious fanatics; they are also organized criminal enterprises. They use illegal markets to generate huge sums of money, which allows them to buy arms and sustain their fighters.”
Extortion and 'Taxation' of Local Communities
Another key source of funding is the extortion of local communities. Boko Haram, ISWAP, and bandit groups operate like shadow governments in areas under their control, forcing residents to pay taxes in exchange for "protection."
Residents in parts of Borno, Yobe, and Zamfara states have reported being forced to pay monthly levies to avoid attacks. A displaced villager from Borno State narrated his experience:
“They come to our village and demand money, food, and even our livestock. If we refuse, they burn our homes or kill people as punishment. We have no choice but to comply.”
The Nigerian military has struggled to disrupt these funding networks, as terrorists use local markets and informal banking systems (hawala) to move money without detection.
Political and Elite Complicity: Are Some Politicians Involved?
There have been accusations that some politicians and elites secretly fund terrorist groups for political or economic gains. In 2017, a former governor of Borno State, Kashim Shettima, publicly admitted that some powerful individuals were sponsoring Boko Haram to destabilize the government.
Similarly, in 2021, the United Arab Emirates (UAE) listed six Nigerians as terrorism sponsors, accusing them of funding Boko Haram through international money transfers. However, no significant action was taken against them by Nigerian authorities.
Former President Goodluck Jonathan once claimed:
“There are Boko Haram members in my government.”
This suggests that even within the corridors of power, some individuals benefit from the chaos and ensure that terrorism continues.
How Can Nigeria Cut Off Terrorism Financing?
- Stronger Financial Intelligence: The government must track and block suspicious financial transactions, particularly cryptocurrency-based funding.
- Stricter Border Control: Many funds come through illegal cross-border trade with neighboring countries. Improved surveillance can help block these inflows.
- Crackdown on Corrupt Officials: Government officials found guilty of funding terrorists should face severe legal consequences.
- Improved Security for Kidnap Victims: If ransom payments stop, terrorists will lose a major source of income. The government must improve security to prevent abductions.
- Engagement with International Partners: Nigeria must collaborate with countries like the U.S., UAE, and France to track terrorist financing networks.
Conclusion
Religious extremism in Nigeria is not just about ideology—it is a well-funded operation backed by criminal enterprises, foreign sponsors, and, in some cases, political interests. Unless the government aggressively targets these funding sources, the fight against terrorism will remain an uphill battle.
The question is: Is the Nigerian government truly committed to stopping terrorism, or are there unseen forces benefiting from the crisis?