The Nigerian Financial Intelligence Unit (NFIU) has raised concerns over a sharp increase in suspicious financial transactions routed from Nigeria to Dubai and Hong Kong—two jurisdictions it describes as emerging global hotspots for illicit financial activity.
In a report released in May 2025 and obtained on Tuesday, the NFIU revealed that between January 2021 and September 2024, it received 401 Suspicious Transaction Reports (STRs) tied to both regions, with the total value of these flagged transactions exceeding N48 billion.
Dubai alone accounted for 185 of those reports, but made up the largest portion of the value—N29.6 billion. The remaining 216 transactions, traced to Hong Kong, amounted to N18.6 billion.
Describing the trend as “disturbing,” the agency warned that both cities have become attractive destinations for illicit financial flows due to weak enforcement, regulatory gaps, and the ease of establishing shell companies and offshore accounts. According to the NFIU, these systemic vulnerabilities are increasingly being exploited by criminal networks.
“This advisory is intended to alert stakeholders and reinforce the need for Enhanced Due Diligence in detecting and preventing the abuse of Nigeria’s financial system,” the report stated.
It emphasized that heightened vigilance and timely reporting of suspicious activities connected to these regions are essential to shielding Nigeria’s economy from being used for money laundering, terrorist financing, and other forms of financial crime.
The scale of the problem has grown significantly over the last few years. In 2021, only two STRs were filed—valued at just N42 million. By 2024, that number had ballooned to 202 reports with a combined value of N32 billion, pointing to a dramatic escalation in suspicious financial movements.
The NFIU highlighted Dubai’s growing prominence in global financial crime investigations.
While recognized as a major economic hub in the Middle East, its expanding real estate sector and investor-friendly policies have also attracted individuals under international sanctions, politically exposed persons (PEPs), and alleged criminals.
The report cited the 2020 “Dubai Leaks” as an example, which uncovered widespread property ownership by controversial figures in the city.
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Similarly, Hong Kong was identified as a critical link in the global financial system that is struggling with its own regulatory challenges. As a leading Asian financial centre and a key gateway to mainland China, the city has been at the centre of several high-profile money laundering cases involving major global banks.
These incidents, the report said, highlight the difficulty of maintaining financial openness while enforcing strict oversight.
In response to these developments, the NFIU is calling on Nigerian banks and financial regulators to implement stronger due diligence measures, improve transaction monitoring, and ensure prompt and accurate reporting of any suspicious links to Dubai and Hong Kong.
“The findings serve as a warning,” the agency concluded.
“If Nigerian institutions fail to act decisively, the country risks increased exposure to financial crime and potential damage to its international reputation.”
