Security sources say renewed push aims to block cash-based ransom payments, track illicit financial flows, and weaken kidnapping syndicates across Nigeria.
By A1NEWS International – June 23, 2026
ABUJA, NIGERIA – The Federal Government is reviewing plans to tighten Nigeria’s cashless policy as part of a broader security strategy aimed at disrupting kidnapping networks and reducing ransom-driven criminal activity across the country.
Security and financial intelligence sources say the proposal is gaining traction among top security officials who believe that restricting cash transactions could significantly weaken the operational capacity of kidnapping syndicates that rely heavily on untraceable ransom payments.
The move comes amid intensified nationwide efforts to dismantle criminal networks responsible for abductions, banditry, and related violent crimes.
Cashless Policy Returns to Security Agenda
According to multiple security sources familiar with ongoing discussions, senior government officials have advised a reinvigoration of the cashless framework originally introduced in 2011 and tightened in 2022.
The policy, which was partially relaxed after 2023, is now being reconsidered as a strategic tool to cut off financial lifelines used by kidnappers.
One source described the rationale clearly:
“Criminals prefer cash because it cannot be traced. Once ransom payments go through formal banking channels, tracking becomes much easier for investigators.”
Authorities believe that reducing cash circulation in ransom transactions could provide security agencies with actionable financial intelligence to trace suspects and dismantle criminal financing structures.
Security Strategy: Targeting Kidnapping Economy
Security officials argue that kidnapping for ransom has evolved into a structured criminal economy involving coordinated networks that target commuters, farmers, students, traditional rulers, and rural communities.
The proposed tightening of the cashless policy is expected to:
- Restrict anonymous cash ransom payments
- Improve financial intelligence gathering
- Strengthen tracking of illicit transactions
- Disrupt funding channels of criminal groups
Analysts say the approach reflects a shift from reactive security operations to financial disruption of criminal ecosystems.
Expert Reactions: Support and Caution
Security expert Iyke Odife described kidnapping as one of Nigeria’s most persistent security threats, noting that criminal groups exploit cash-based transactions to avoid detection.
He argued that Nigeria’s heavy reliance on physical cash enables kidnappers to collect and move ransom proceeds without leaving traceable financial records.
Another security analyst, Mohammed Sani, described the proposal as a “positive policy direction,” adding that increased use of digital payment systems would enhance law enforcement’s ability to trace suspicious financial flows.
However, financial expert Chukwudi Ayogu cautioned that the effectiveness of any renewed cashless policy would depend on:
- Reliable banking infrastructure
- Expanded digital payment access in rural areas
- Public trust in financial systems
- Strong enforcement mechanisms
He warned that without addressing rural financial exclusion, criminals could simply shift operations to informal channels.
Security Operations Intensify in Oyo Forest Rescue Mission
In a separate development, security forces are intensifying operations aimed at rescuing 39 schoolchildren and seven teachers abducted in Oriire Local Government Area of Oyo State.
The victims were kidnapped on 15 May 2026 when armed assailants attacked Baptist Nursery and Primary School in Yawota and nearby communities.
Security sources confirmed that troops have established a coordinated blockade around sections of the National Park forest believed to be holding the victims.
Terrorists Cornered as Security Forces Close In
According to intelligence reports, security operatives have successfully restricted the movement of the kidnappers by sealing off key escape routes within the forest.
A security source described the operation as being in a “critical phase,” noting that the criminals are now under sustained pressure.
“The operation has entered a critical phase. The criminals are under immense pressure and are finding it increasingly difficult to manoeuvre,” the source said.
Reports also suggest that one of the abducted teachers was killed by the captors amid growing pressure from advancing security forces, an act believed to be intended to intimidate authorities.
Shifting Demands and Reduced Leverage
Initial demands by the kidnappers reportedly included the release of detained insurgent leaders, financial ransom, and logistical support.
However, security sources indicate that sustained military pressure has forced the group to scale back some of its conditions.
Media reports have linked the attackers to elements associated with Jama’atu Ansarul Muslimeena Fi Biladis Sudan (Ansaru), an extremist faction with known insurgent ties.
Vulnerable Corridor and Expanding Threat Landscape
The affected communities lie along difficult terrain linked to forest corridors connecting parts of Oyo State to the Niger Republic axis and the Kainji forest region.
Security analysts say such areas remain highly vulnerable due to:
- Weak infrastructure
- Limited surveillance
- Poor communication networks
- Forest-based insurgent mobility routes
Experts warn that terrorist groups displaced from traditional northern strongholds are increasingly exploiting such soft targets in southern and central regions.
Government Response and Security Commitment
A senior security official expressed optimism that ongoing operations would lead to the dismantling of criminal networks responsible for the attacks.
“We remain committed to ensuring that criminal groups have no haven anywhere in the country. The momentum of current operations is encouraging,” the official said.
Authorities say coordinated land and intelligence-driven operations will continue until the safe recovery of all abducted victims.
The Federal Government’s consideration of a stricter cashless policy marks a significant shift toward financial disruption as a counter-kidnapping strategy, complementing ongoing military operations in affected regions.
While security agencies argue that limiting cash-based ransom payments could weaken kidnapping syndicates, experts caution that success will depend on infrastructure readiness and inclusive financial access.
As rescue operations continue in Oyo State, and policy discussions intensify in Abuja, Nigeria’s response to kidnapping appears to be entering a dual phase—military pressure in the forests and financial pressure in the banking system.
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