Nigeria’s Terrorist Financing: CDS Exposes Gold Trade and International Networks
In a startling revelation that has sent shockwaves through Nigeria’s security and political circles, the Chief of Defence Staff (CDS), General Christopher Musa, has exposed how terrorist groups operating within the country are increasingly turning to gold trading to fund their deadly operations. The disclosure, made during a televised interview on Thursday, August 21, underscores the sophisticated and transnational nature of terrorist financing that continues to challenge Nigeria’s counter-insurgency efforts.
A Complex Web of Terror Financing
Appearing on Channels Television’s flagship program Politics Today, General Musa did not mince words. He laid bare the intricate mechanisms through which terror groups—including Boko Haram, ISWAP, and bandit militias—sustain their activities. According to the Defence Chief, these organizations are leveraging Nigeria’s artisanal gold mining sector, illicitly trading the precious metal to generate substantial revenue.
“Gold. They try to circulate this money, and that is why it is important for us to be able to track these things,” Musa stated emphatically. He went on to explain that terror financiers rely on complex networks, including international connections, which make it difficult to immediately expose or prosecute them.
But why gold? The answer lies in its high value, relative anonymity, and ease of movement across borders. Unlike cash, which can be traced or seized, gold can be smuggled, sold on international markets, and converted into foreign currency with relative ease. For terrorist groups operating in Nigeria’s northwest and northeast, where artisanal mining is widespread, gold has become the currency of choice.
International Connections and Local Collaborations
General Musa emphasized that the problem is not solely domestic. “The process is on. It has to do with a lot of legal issues, and because it has to do with international connections, some of them have funds coming from outside—we cannot do anything from within,” he noted.
This admission highlights a critical challenge: the involvement of foreign actors and cross-border financial flows that complicate Nigeria’s ability to monitor and disrupt these networks. International cooperation is essential, yet often hampered by jurisdictional and diplomatic hurdles.
At the local level, the tactics are equally cunning but more grassroots. Terror groups are embedding themselves within communities, offering economic incentives to recruit collaborators. “The local ones, what they do normally is that they try to employ a few individuals, provide motorcycles to them, something to do, and those are remitting funds daily into some account,” Musa revealed.
This approach not only generates income but also builds a web of complicity, making it harder for security forces to distinguish between civilians and combatants.
Military Sabotage: An Inside Job?
This is not the first time General Musa has raised alarms about internal compromises within Nigeria’s security architecture. Months earlier, he had pointed to the presence of military saboteurs collaborating with terrorists, particularly in the wake of the Yelwata massacre in Benue State, which claimed over 200 lives.
His concerns were echoed by Borno State Governor Babagana Zulum, who in May 2025 openly accused certain military officers and politicians of serving as informants for Boko Haram. “We have informants and collaborators within the Nigerian armed forces, within the politicians, and within the communities,” Zulum stated. “What we shall do is to strengthen our intelligence and to deal with them ruthlessly.”
These revelations paint a troubling picture of a conflict being fought not only on the front lines but also within the very institutions tasked with protecting the nation.
Gold: The New Blood Diamond?
The use of natural resources to fund conflicts is not new. From blood diamonds in Sierra Leone to opium in Afghanistan, history is replete with examples of how valuable commodities can fuel violence. In Nigeria, gold is rapidly becoming the latest conflict mineral.
Northern Nigeria, particularly Zamfara and Niger States, is rich in gold deposits. For years, illegal mining has been rampant, often controlled by armed groups who exploit local miners and evade government oversight. The proceeds from this trade are used to purchase weapons, pay fighters, and sustain logistical operations.
But what makes gold particularly attractive is its liquidity. A handful of gold dust can be sold for thousands of dollars, and unlike digital transactions, it leaves no paper trail. For terrorist groups operating in remote areas with limited banking infrastructure, gold is both a store of value and a medium of exchange.
The Military’s Response: Challenges and Strategies
In response to these threats, the Nigerian military has stepped up its efforts. General Musa confirmed that tracking financial flows remains a priority, but admitted that legal and operational challenges persist.
“It has to do with a lot of legal issues,” he said, alluding to the need for stronger legislation and international agreements to curb illicit financial activities. Nigeria’s recently amended Terrorism Prevention Act provides a framework, but enforcement remains weak.
Meanwhile, on the ground, the military is adopting a multi-pronged approach. This includes increased aerial surveillance of mining sites, collaboration with the Economic and Financial Crimes Commission (EFCC), and community engagement programs aimed at discouraging collaboration with terror groups.
In Benue State, where herder-militia violence has escalated, the Chief of Army Staff, Lt Gen Olufemi Oluyede, has temporarily relocated to Makurdi to oversee operations. Additional troops have been deployed, and strategic meetings held with local commanders to reassure affected communities.
A Global Problem Requiring a Global Solution
General Musa’s disclosures underscore a sobering reality: terrorism is a transnational business. The gold mined in Nigeria may be sold in Dubai, with proceeds funneled through offshore accounts or hawala networks. Tackling this requires not only domestic resolve but also international cooperation.
Organizations like the Financial Action Task Force (FATF) have long warned about the use of gold and other precious metals in money laundering and terror financing. Yet, implementation of these guidelines remains inconsistent across regions.
For Nigeria, the path forward involves strengthening regulatory oversight of the mining sector, enhancing financial intelligence capabilities, and fostering closer ties with international partners. It also requires addressing the root causes of terrorism—poverty, unemployment, and governance failures—that make recruitment and collaboration so easy.
Conclusion: A Call to Action
General Christopher Musa’s candid interview has pulled back the curtain on a shadowy economy that fuels violence and instability in Nigeria. The use of gold, international networks, and local collaborators reveals a sophisticated enemy that adapts quickly to countermeasures.
But it also presents an opportunity. By understanding how terror financing works, Nigeria and its allies can develop more effective strategies to disrupt it. This will require political will, institutional integrity, and a commitment to tackling corruption at all levels.
As the Defence Chief himself put it, “We need to be able to track these things.” The lives of millions depend on it.