The Nigerian Financial Intelligence Unit (NFIU) has raised the alarm over a dramatic rise in suspicious financial transactions flowing from Nigeria to Dubai and Hong Kong, two regions increasingly linked to illicit financial activity.
In a newly released May 2025 advisory, the NFIU reported a sharp increase in Suspicious Transaction Reports (STRs) involving the two jurisdictions describing the trend as a growing threat to Nigeria’s financial integrity.
According to the report, while only two STRs valued at ₦42 million were recorded in 2021, the number had ballooned to 202 STRs worth over ₦32 billion by 2024. Cumulatively, from January 2021 to September 2024, the NFIU received 401 STRs linked to transactions involving over ₦48 billion, with 185 tied to Dubai and 216 to Hong Kong.
“This surge is not only concerning but indicative of the growing role these jurisdictions play in Nigeria’s illicit financial flow network,” the report noted.
The agency has now directed financial institutions, as well as designated non-financial businesses and professions (DNFBPs) including real estate agents, law firms, and accountants to apply Enhanced Due Diligence (EDD) measures to all transactions connected to Dubai and Hong Kong. Institutions are urged to adopt robust transaction monitoring systems and comprehensive reporting mechanisms to detect and prevent abuses of Nigeria’s financial system.
The NFIU cited international research including findings from Sussex University that identifies the “Dubai-Hong Kong axis” as a key route for Illicit Financial Flows (IFFs). This route is said to leverage its strategic location between Asia and the Middle East, while benefiting from legacy connections to Western financial systems through historic colonial ties.
“This axis is increasingly viewed as an attractive route for ‘dirty money’ networks,” the report said, adding that the regulatory and legal disparities between jurisdictions in the axis enable a wide spectrum of illicit financial activities, from money laundering to terrorism financing.
With financial crimes becoming more globalized and complex, the NFIU’s warning comes at a critical time. The agency stressed the urgency of inter-agency collaboration and tighter oversight to stem the tide of capital flight and underground financial flows draining Nigeria’s economy.
The advisory also arrives in the wake of recent disclosures by the EFCC and ICPC, which reported combined recoveries of ₦277 billion and $105 million in 2024 alone underscoring the scale of financial crime and the challenges facing Nigeria’s anti-corruption institutions.
“In view of the above,” the NFIU concluded, “this advisory is issued to safeguard the financial system from emerging threats and to ensure that all stakeholders play their part in protecting national and global financial integrity.”
