COMPARATIVE ANALYSIS OF CRYPTO CURRENCY AND TERRORISM FINANCING IN NIGERIA AND KENYA
Oladipupo AbdulMalik Olalekan and Akeem Adekunle Amodu
Volume 12 Issue 1
Abstract
This study presents a comparative analysis of Nigeria and Kenya to evaluate how each country regulates crypto currency use in terrorism financing. As non-state actors increasingly exploit decentralized digital currencies to evade conventional financial controls, examining state responses is both timely and critical. Nigeria has adopted a prohibitionist stance, instructing financial institutions to cease dealings in crypto currencies a measure that has driven illicit activity underground and rendered it less visible to regulators. Conversely, Kenya has implemented liberal policies that foster financial innovation while simultaneously enforcing international anti money laundering (AML) and counter–financing of terrorism (CFT) standards. Data were collected from 103 participants (67 from Nigeria and 36 from Kenya) and analyzed using both SPSS for quantitative insights and NVivo for qualitative themes. Findings indicate a growing trend of terrorist groups transacting in crypto currencies in both jurisdictions. Despite Kenya’s open regulatory framework, enforcement remains weak, limiting effective oversight. Nigeria’s outright ban promotes opacity and hampers transparency. Based on these results, the study argues for a balanced, dual-pronged regulatory model that encourages financial innovation and protects national sovereignty. Such an approach would align technological progress with robust AML/CFT safeguards. This study contributes to the literature on digital finance regulation, security policy, and the harmonization of regional regulatory frameworks. Keywords: Cryptocurrency, Terrorism Financing, Nigeria, Kenya, Financial Regulation, AML/CFT
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