The Central Bank of Nigeria has introduced a stronger supervisory framework aimed at preventing banks and other financial institutions from being used to finance terrorism or facilitate other illicit activities.

The apex bank said terrorism financing supervision is now one of its priorities as part of efforts to protect the Nigerian financial system from abuse by criminal and illicit actors.

In a statement, the Acting Director of Corporate Communications and Investor Relations Department, Hakama Sidi-Ali, said the enhanced supervision would focus on four key areas.

These include how financial institutions identify and manage terrorism financing risks, monitor transactions for suspicious activities, implement targeted financial sanctions and report suspicious transactions linked to terrorism financing.

Sidi-Ali said the CBN would adopt a risk-based approach to supervision, allowing the regulator to focus greater attention on banks and financial institutions considered more vulnerable to terrorism financing risks.

The CBN said the initiative would also support Nigeria's domestic and international efforts to combat terrorism financing, proliferation financing and other threats to the integrity of the financial system.