Dr Bashir Kurfi, a lecturer in International Finance at Ahmadu Bello University (ABU), Zaria, says allegations linking some Bureau De Change (BDC) operators to terrorism financing are not surprising, considering the global nature of terrorism and the widespread use of foreign currencies in illegal transactions.
Speaking during an interview on Trust TV on Wednesday, Kurfi said terrorist groups such as Boko Haram and the Islamic State West Africa Province (ISWAP), which operate across the Sahel region, depend on international financial networks to move funds.
“When you talk of terrorism, it has an international dimension. Groups like Boko Haram and ISWAP have networks across countries, so there will naturally be international movement of funds,” he said.
Commenting on reports from the United States linking some Nigerian BDC operators to suspicious financial transactions, Kurfi said BDCs could easily be used for illicit activities because they deal largely in cash and foreign currencies.
“Bureau De Change operators can become a vehicle because they handle cash and different currencies. The US dollar remains the dominant currency in international transactions, including illegal ones,” he said.
Kurfi blamed Nigeria’s weak economy and poor political leadership for the increasing preference for the dollar over the naira.
“The currency of a country is its dignity. Once it loses value and public confidence, people begin to look for alternatives,” he stated.
He also attributed the naira’s weakness to Nigeria’s heavy dependence on imports, noting that even local industries rely on imported raw materials.
The economist further linked insecurity in some parts of the country to illegal mining activities, saying mineral resources have fuelled conflicts in several African countries.
“There is a relationship between banditry and mining. In many conflict areas, valuable mineral resources help sustain violence,” he said.
Kurfi called for stronger regulation of the financial sector, improved economic policies and closer monitoring of mining activities to curb insecurity and illicit financial flows in the country.
