The Nigerian Financial Intelligence Unit (NFIU) is sounding the alarm over a worrying trend, billions of naira are being moved out of the country through suspicious transactions tied to Dubai and Hong Kong.
In a report released in May, the agency revealed it tracked 401 suspicious financial transactions linked to both cities between January 2021 and September 2024. The total value is a staggering ₦48 billion.
Dubai alone accounted for 185 of those reports but made up the lion’s share of the money, ₦29.6 billion. Hong Kong wasn’t far behind, with 216 reports amounting to ₦18.6 billion.
“The NFIU finds it pertinent to issue this advisory to relevant stakeholders to employ Enhanced Due Diligence in the detection, deterrence, and prevention of abuse of the financial system through these hotspots,” the report stated.
“Reporting suspicious transactions and activities flowing from these jurisdictions is critical to protecting the Nigerian financial system and contributing to the global fight against money laundering, terrorist financing, and proliferation financing.”
What worries the NFIU even more is how rapidly these transactions have grown. In 2021, only two reports were flagged, involving ₦42 million. By 2024, that number exploded to 202 reports worth ₦32 billion.
The report blamed the trend on weak enforcement, regulatory loopholes, and the easy setup of shell companies and offshore accounts in both Dubai and Hong Kong. These conditions, it said, have created a haven for financial criminals.
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“Dubai, a major financial and commercial centre in the Middle East, has become a focal point in the global fight against money laundering,” the report noted.
“Its strategic location, burgeoning real estate market, and business-friendly environment make it appealing to both legitimate investors and criminal actors.”
The agency pointed to the 2020 Dubai Leaks as an example, an investigation that revealed how sanctioned individuals, criminal suspects, and politically exposed persons held massive property portfolios in the city.
Hong Kong, the NFIU warned, is facing similar challenges. “Hong Kong, a major financial hub in Asia, is similarly challenged by money laundering activities. Its role as an international finance centre and gateway to mainland China makes it a critical node in global financial flows.
“The city has witnessed a number of high-profile money laundering cases involving major international banks. These incidents underscore the ongoing challenge of balancing financial openness with effective regulatory oversight.”
In light of these revelations, the NFIU is urging Nigerian banks and regulators to be more vigilant. It called for tighter monitoring, faster reporting, and stronger due diligence on transactions involving Dubai and Hong Kong.
“This advisory is a call to arms for Nigerian financial stakeholders,” the report concluded. “Failure to act decisively could expose the country to deeper financial crime risks and serious international reputational damage.”