The federal government is considering the reinvigoration of the cashless policy as part of broader efforts to curb the rising wave of kidnappings and related criminal activities across the country.
The consideration of strengthening the policy comes amid intensified efforts by security agencies to dismantle kidnapping syndicates and cut off their sources of funding, as authorities continue to seek sustainable solutions to the country’s security challenges.
Top security sources disclosed that senior government officials have advised authorities at the highest level to tighten the policy, which is being viewed as one of the strategies to disrupt the operations of kidnappers, bandits and other criminal groups.
According to the sources, the move is intended to make it more difficult for criminals to receive ransom payments, which are often demanded and collected in cash to avoid detection.
One of the sources said: “Criminals prefer to receive ransom payments in cash because the money cannot be traced. Once ransom is paid through the banking system, it becomes easier to track them.”
Introduced in 2011, the policy was strengthened and made stricter in December 2022. However, after 2023, many of the stricter guidelines were relaxed.
The source further stated that security agencies believe a stricter cashless regime would strengthen intelligence gathering and improve law enforcement’s ability to monitor suspicious financial transactions linked to kidnapping networks.
Reacting to this, security expert Iyke Odife said kidnapping for ransom had become one of Nigeria’s most pressing security challenges, with criminal gangs targeting commuters, farmers, students, traditional rulers and residents in both urban and rural communities.
He argued that the country’s heavy reliance on cash transactions provides criminals with a convenient way to collect and move ransom proceeds without leaving a digital trail.
Another security expert, Mohammed Sani, said the idea is a good one and is expected to encourage greater use of electronic payments, bank transfers and other digital financial channels, thereby enhancing security agencies’ capacity to track illicit financial flows.
He noted that, although it remains at the proposal stage, government officials are reportedly examining lessons from previous cashless initiatives and consulting relevant stakeholders, including financial institutions, security agencies, regulatory bodies and other parties involved in the policy’s earlier successes.
Meanwhile, financial expert Chukwudi Ayogu noted that the success of any renewed cashless policy would depend on adequate banking infrastructure, improved digital payment systems, public confidence and effective enforcement mechanisms, particularly in rural areas where access to financial services remains limited.
Meanwhile, there may be fresh hope for the safe rescue of 39 schoolchildren and seven teachers abducted from schools in Oriire Local Government Area of Oyo State, as security forces intensify operations against their captors in a remote forest hideout.
Security sources disclosed that troops, supported by other security agencies, have tightened a security cordon around a section of the National Park forest where the kidnappers are believed to be holding the victims.
The victims were seized on 15 May 2026 when armed terrorists stormed Baptist Nursery and Primary School in Yawota and two other schools in nearby communities, carting away pupils and teachers in one of the most disturbing school attacks recorded in the South-West this year.
Sources familiar with the operation said security personnel have successfully restricted the movement of the terrorists by sealing off strategic escape routes within the forest, significantly reducing the kidnappers’ ability to relocate their captives.
According to the sources, “The operation has entered a critical phase. The criminals are under immense pressure and are finding it increasingly difficult to manoeuvre.”
Further intelligence reports indicated that the terrorists have become increasingly desperate as security forces advance on their position. Their actions reportedly included the killing of one of the abducted teachers, an act investigators believe was intended to intimidate authorities and influence the ongoing rescue efforts.
The kidnappers had initially presented a series of demands, including the release of detained terrorist leaders, financial ransom and logistical support. However, security sources indicated that continued pressure from security agencies has forced the group to scale back some of those conditions.
Media reports have linked the abduction to elements associated with the extremist group Jama’atu Ansarul Muslimeena Fi Biladis Sudan (Ansaru), a faction with historical ties to insurgent activities in northern Nigeria.
