 has raised serious concerns over a sharp increase in suspicious financial transactions flowing from Nigeria to Dubai and Hong Kong){kind=link}
The Nigerian Financial Intelligence Unit (NFIU) has raised serious concerns over a sharp increase in suspicious financial transactions flowing from Nigeria to Dubai and Hong Kong—jurisdictions it has identified as emerging global centres for illicit financial activity.
According to a report released in May 2025 and made available to the press on Tuesday, the NFIU disclosed that it received 401 Suspicious Transaction Reports (STRs) involving financial activities between Nigeria and these two regions from January 2021 to September 2024.
The total value of the transactions in question exceeds N48 billion.
Of the reported transactions, 185 were linked to Dubai, accounting for N29.6 billion, while 216 transactions traced to Hong Kong amounted to N18.6 billion.
The NFIU described these destinations as increasingly attractive to criminal networks due to regulatory loopholes, the widespread use of shell companies, offshore accounts, and weak enforcement mechanisms.
The report warned of a troubling pattern: the number of suspicious transactions has surged dramatically over the years. In 2021, only two STRs valued at N42 million were reported.
By 2024, the number had skyrocketed to 202 STRs, totalling N32 billion.
Highlighting the potential risks, the NFIU stressed the need for financial institutions and regulators in Nigeria to step up their scrutiny.
“Enhanced Due Diligence in detecting, deterring, and preventing financial system abuse is essential,” the report advised. “Monitoring and timely reporting of transactions linked to these jurisdictions are critical in safeguarding Nigeria’s financial integrity and supporting the global effort against money laundering and terrorist financing.”
Dubai was singled out as a particularly vulnerable spot due to its role as a commercial and financial hub in the Middle East.
Its strategic location, thriving real estate sector, and lenient financial policies were cited as factors attracting both legitimate and illicit funds.
The report referenced the 2020 Dubai Leaks, which exposed how sanctioned individuals, suspected criminals, and politically exposed persons held valuable real estate assets in the city.
Hong Kong, meanwhile, was described as another high-risk financial centre. Its proximity to mainland China, status as an international financial gateway, and history of major money laundering cases involving global banks underscore its challenges.
According to the NFIU, balancing the city’s financial openness with regulatory control has proven difficult, increasing its susceptibility to illicit transactions.
In response to these revelations, the NFIU has called on Nigerian financial entities to upgrade their monitoring systems and take immediate steps to implement stricter oversight of international transactions, especially those involving Dubai and Hong Kong.
“This advisory serves as a strong warning to Nigeria’s financial stakeholders,” the report concluded.
“Failure to respond adequately could escalate the risks of financial crime and severely damage the country’s global financial reputation.”