The Nigerian Financial Intelligence Unit (NFIU) has raised fresh concerns over a sharp rise in suspicious financial outflows from Nigeria to Dubai and Hong Kong, amounting to a staggering N48 billion.
In its May 2025 advisory report obtained by our correspondent, the NFIU disclosed that it received 401 Suspicious Transaction Reports (STRs) related to both destinations between January 2021 and September 2024. Of these, 185 STRs linked to Dubai accounted for N29.6 billion, while 216 STRs involving Hong Kong were valued at N18.6 billion.
Labeling the two regions as "financial hotspots" for illicit activities, the NFIU warned Nigerian institutions to enhance vigilance and apply stricter due diligence to financial dealings involving Dubai and Hong Kong.
“The NFIU has observed a marked increase in suspicious cross-border transactions routed through these two jurisdictions,” the report noted. “This trend underscores the urgency for robust monitoring and timely reporting to safeguard Nigeria’s financial integrity.”
The report revealed a significant spike in illicit flows over the four-year period. In 2021, the NFIU recorded just two STRs totaling N42 million, but by 2024, the number had surged to 202 STRs valued at N32 billion, indicating a rapidly growing problem.
The agency attributed the surge to a combination of regulatory vulnerabilities, the rise of shell companies, offshore accounts, and lenient enforcement regimes in both Dubai and Hong Kong, which have increasingly attracted international financial criminals.
“Dubai’s emergence as a preferred destination for laundered funds is driven by its open economy, high-value real estate sector, and investor-friendly policies,” the NFIU said. It also referenced the 2020 Dubai Leaks, which exposed how politically exposed persons and individuals facing international sanctions acquired large real estate holdings in the city.
Regarding Hong Kong, the agency highlighted its strategic importance as a global financial hub and gateway to China, while noting that it has been plagued by high-profile laundering cases involving major international banks. These issues, the NFIU argued, point to systemic weaknesses in financial oversight.
In response, the NFIU is urging Nigerian financial institutions to implement Enhanced Due Diligence (EDD) procedures, upgrade transaction monitoring systems, and report suspicious activity linked to both destinations without delay.
“The integrity of our financial system is at stake,” the report warned. “Ignoring these red flags could expose Nigeria to increased criminal infiltration and damage our reputation in the global financial community.”
The advisory forms part of the NFIU’s broader strategy to align with global anti-money laundering and counter-terrorism financing standards, as Nigeria continues its battle against economic crimes and illicit financial flows.
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