Author(s) :

PRINCEWILL Okwara, Ph.D , NJOKU Hyacinth Tochukwu, Ph.D , Emmanuel Ochogwu .

Volume/Issue :

Abstract :

This study assesses the impact of cryptocurrency on terrorism financing in Nigeria focusing on the growing use of digital financial technologies and their implications for national security. The rapid adoption of cryptocurrencies has transformed financial transactions globally, offering efficiency and innovation while also creating new avenues for illicit financial activities. In Nigeria, concerns have emerged regarding the potential exploitation of cryptocurrencies by terrorist groups and criminal networks to facilitate terrorism financing and evade regulatory oversight. The objectives of the study are to examine the extent to which cryptocurrencies are used in financing terrorist activities in Nigeria, identify vulnerabilities within the country’s financial and regulatory systems, and evaluate the effectiveness of existing countermeasures. The study is anchored on Technology Determinism Theory, popularized by Marshall McLuhan in 1964, which emphasizes the role of technology in shaping social behavior and institutional responses. A mixed-method research design was adopted, drawing on both primary and secondary data sources, including interviews with officials from key regulatory institutions such as the Economic and Financial Crimes Commission, the Central Bank of Nigeria, and the Securities and Exchange Commission. Findings reveal that while cryptocurrencies are increasingly being considered as a tool for terrorism financing, they remain secondary to traditional cash-based methods in Nigeria. However, their anonymity, speed, and borderless nature present emerging security risks. The study concludes that strengthening regulatory frameworks, enhancing institutional capacity, and aligning national policies with the standards of the Financial Action Task Force are essential for effectively combating terrorism financing in the digital era. Key Words: Cryptocurrency, Terrorism Financing, Digital Currency, Financial Crime.

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