The Nigerian Financial Intelligence Unit (NFIU) has launched a sweeping investigation into over ₦48 billion worth of suspicious financial transactions funneled from Nigeria to Dubai and Hong Kong, two global financial centers increasingly linked to illicit fund movements.
According to an exclusive advisory report released by the NFIU in May 2025 and obtained by ireport247news.com, the unit documented a staggering 401 Suspicious Transaction Reports (STRs) between January 2021 and September 2024. The flagged transactions include 185 reports involving Dubai, worth ₦29.6 billion, and 216 reports tied to Hong Kong, valued at ₦18.6 billion.
The NFIU raised red flags over what it called an “alarming surge” in illicit financial flows to these destinations, warning that failure to act could expose Nigeria’s financial system to serious crime risks and reputational harm on the international stage.
“Dubai and Hong Kong have emerged as critical hotspots for financial crime due to their regulatory blind spots, business-friendly environments, and thriving offshore finance sectors,” the NFIU stated.
The report outlined a sharp and troubling rise in the volume and value of suspicious transactions over the four-year period. In 2021, the NFIU received only two STRs, with a combined value of ₦42 million. By 2024, the volume had skyrocketed to 202 STRs, totaling over ₦32 billion.
The exponential growth has raised concerns about increased abuse of the Nigerian financial system for money laundering, tax evasion, and terrorism financing.
According to the NFIU, a combination of weak enforcement, complex regulatory loopholes, and the widespread use of shell companies and offshore accounts have fueled the surge.
Dubai, long viewed as a tax haven and luxury destination for global elites, has increasingly drawn scrutiny for its opaque financial practices. Its real estate sector in particular has become a haven for hiding illicit wealth.
The NFIU report referenced the widely publicized Dubai Leaks of 2020, which revealed how individuals under international sanctions, including politically exposed persons (PEPs) and suspected criminals, used Dubai’s property market to stash billions in hidden assets.
“Dubai’s booming real estate sector, strategic location, and lax oversight make it a prime laundering hub,” the NFIU stated. “While it remains attractive to investors, the same qualities lure criminal syndicates and corrupt networks.”
Hong Kong, one of Asia’s most important financial gateways, is similarly vulnerable. Though renowned for its economic openness, the city’s role in global financial flows has made it a key node for money laundering and tax evasion schemes.
The report noted that Hong Kong’s involvement in several high-profile global financial scandals, including those involving international banks, underscores the regulatory challenges the city faces.
“Hong Kong’s regulatory structure, while robust on paper, struggles with enforcement—especially in offshore banking and corporate secrecy jurisdictions,” the NFIU said.
In response to the findings, the NFIU has issued a strong advisory to Nigerian financial institutions, calling for:
Enhanced Due Diligence (EDD) procedures for all international transactions linked to Dubai and Hong Kong;
Improved transaction monitoring systems capable of detecting red flags in real time;
Timely reporting of suspicious activities to appropriate authorities; and
Stronger cooperation with global financial intelligence bodies.
“This advisory is a call to arms for Nigerian financial stakeholders,” the NFIU concluded. “Failure to respond effectively will not only compromise national financial security but also jeopardise Nigeria’s standing in the global financial community.”
Experts say the revelation could prompt greater scrutiny from international partners, particularly the Financial Action Task Force (FATF), which monitors global efforts to combat money laundering and terrorism financing. Nigeria, which was previously on the FATF’s grey list, could risk re-listing if concrete steps are not taken.
Furthermore, there are growing concerns that criminal actors may be exploiting gaps between regulatory agencies and commercial banks to move dirty money abroad unchecked.
In recent months, the NFIU has partnered with key stakeholders to plug loopholes in Nigeria’s financial ecosystem. In February 2025, the agency signed a Memorandum of Understanding (MoU) with eTranzact, a fintech company, aimed at improving fintech compliance and transaction traceability.
However, critics argue that Nigeria’s enforcement architecture remains weak and fragmented, making coordination difficult across multiple oversight agencies.
Financial institutions are expected to tighten controls and re-evaluate cross-border transaction risk models in the coming weeks. The Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC), and Economic and Financial Crimes Commission (EFCC) have also been put on alert.
Analysts believe the NFIU’s investigation will likely trigger asset tracing operations and further forensic audits, especially targeting politically exposed persons (PEPs) and corporate entities with offshore links.
As illicit capital outflows threaten to drain Nigeria’s foreign reserves and weaken investor confidence, experts stress the need for swift and transparent reforms.
“The battle against illicit financial flows must go beyond advisories and policy papers,” said Dr. Sola Adeyemi, a financial crimes expert. “Nigeria needs prosecutions, inter-agency synergy, and international cooperation to recover lost billions and restore credibility.”