Nigeria’s banks have emerged as the country’s biggest front-line reporters of potentially illicit financial activity, accounting for about 92 per cent of all Suspicious Transaction Reports (STRs) submitted to the Nigerian Financial Intelligence Unit in 2025.

According to the NFIU’s 2025 Annual Report, reporting entities submitted 42,082 STRs during the year, with Deposit Money Banks alone filing 38,715. The figures highlight the dominant role of banks in Nigeria’s anti-money laundering and financial crime detection framework.

But behind the headline figure is another development likely to attract the attention of regulators, insurers and other financial-sector operators: overall suspicious transaction reporting fell sharply compared with 2024.

Banks dominate suspicious transaction reporting

The NFIU received more than 41.7 million Currency Transaction Reports (CTRs) and 10,513 Suspicious Activity Reports (SARs) in 2025, alongside the 42,082 STRs.

Deposit Money Banks accounted for the overwhelming majority of STR filings, while Other Financial Institutions submitted 2,185 reports.

Designated Non-Financial Businesses and Professions contributed 1,029 STRs, while capital market operators and insurance companies jointly filed just 104. Virtual Asset Service Providers, including cryptocurrency-related businesses, submitted 49.

The concentration of reporting within the banking sector underscores the critical role banks play in monitoring transactions and identifying activity that may require further investigation.

Suspicious reports fell by almost half

Despite the enormous volume of financial monitoring, the NFIU recorded a significant decline in suspicious transaction reports compared with the previous year.

STRs dropped from 82,143 in 2024 to 42,082 in 2025, a reduction of about 48.8 per cent.

Suspicious Activity Reports followed a similar pattern, falling from 23,364 in 2024 to 10,513 in 2025, representing a decline of approximately 55 per cent.

The fall is notable because it occurred against a backdrop of continued regulatory monitoring and an increase in several other categories of financial reporting.

Financial institutions processed millions of reportable transactions

Currency Transaction Reports remained particularly high during the year, with more than 41.7 million filings submitted to the NFIU.

Banks accounted for approximately 89.2 per cent of these reports, filing 37.21 million CTRs. Other Financial Institutions contributed another 4.21 million.

Capital market operators and insurance companies submitted 289,296 CTRs, while Virtual Asset Service Providers accounted for 313.

The NFIU said the reporting framework covers threshold-based transactions, suspicious transactions and activities, as well as regulatory submissions linked to anti-money laundering, counter-terrorism financing and counter-proliferation financing requirements.

Insurance and capital market sectors contribute relatively few STRs

For the insurance industry, the figures offer an interesting snapshot of its role in Nigeria’s broader financial crime reporting system.

Capital market operators and insurance companies collectively submitted 104 STRs in 2025, compared with the tens of thousands reported by banks.

The same group filed 295 Suspicious Activity Reports and 289,296 Currency Transaction Reports.

While the numbers are considerably smaller than those generated by the banking sector, the figures also reflect the different transaction volumes, business models and reporting obligations across financial industries.

The NFIU works with regulators and relevant agencies, including the Central Bank of Nigeria, National Insurance Commission, Securities and Exchange Commission and the Special Control Unit Against Money Laundering, to strengthen compliance among reporting entities.

Crypto-related reporting is rising

Virtual Asset Service Providers recorded relatively small numbers but showed increased reporting activity as the year progressed.

The sector recorded no STRs during the first half of 2025, before filing 17 in the third quarter and 32 in the fourth.

VASP Suspicious Activity Reports also fluctuated throughout the year, while Currency Transaction Reports emerged during the second half, reaching 103 in the third quarter and 210 in the fourth.

The development comes as regulators pay greater attention to digital assets and the potential use of virtual platforms in moving illicit funds.

A new warning signal for financial institutions

The NFIU’s figures present a mixed picture for Nigeria’s financial crime surveillance system.

On one hand, millions of transactions were reported, banks continued to dominate suspicious transaction reporting, and regulatory monitoring remained active.

On the other hand, the almost 49 per cent decline in STRs and 55 per cent fall in SARs raise questions about whether fewer potentially suspicious transactions were detected, whether reporting practices changed, or whether the underlying financial crime risk landscape itself shifted.

For banks, insurers, fintechs, capital market operators and other reporting entities, the message is clear: regulatory scrutiny of transaction monitoring and anti-money laundering compliance is unlikely to disappear.

As Nigeria’s financial system becomes increasingly digital and interconnected, the ability of reporting institutions to identify unusual activity early and provide regulators with accurate intelligence will remain a critical line of defence against money laundering and other financial crimes.