AFRICA - Illegal financial flows: African countries lose over 88 billion dollars every year

Tunis (Fides Agency) - More than 88 billion dollars are lost illegally to African countries every year. This was denounced yesterday, June 27, by the Executive Chairman of the Nigerian Economic and Financial Crimes Commission (EFCC), Olanipekun Olukoyede, in his speech at the Pan-African Conference on Illicit Financial Flows (IFF) in Tunis.
In his speech entitled "The African tax agenda to combat illicit financial flows: from words to action", the EFCC chief emphasized the serious challenge that illicit financial flows pose to Africa's economic stability and development. He pointed out that more than 88.6 billion US dollars are illegally siphoned out of the continent every year, money that could otherwise go towards critical infrastructure, health and education.
The violent protests in Kenya these days are fueled not only by the announcement of a major tax increase in the Finance Bill, which was later withdrawn (see Fides 27/6/2024), but also by the population's awareness that these financial resources are being siphoned off by the state through corruption.
The Economic and Financial Crimes Commission (EFCC), headed by Olanipekun Olukoyede, was established in 2003 in response to rampant corruption in Nigeria under pressure from the country's international creditors, who feared that their loans would not be repaid with the interest due if the looting of state coffers was not curbed. In his speech at the conference in Tunis, the EFCC boss referred to the successes of the agency he heads, including the repayment of USD 311 million from the United States in 2020, which former President Sani Abacha had embezzled during his presidency (1993-1998). This repayment was achieved through cooperation with international partners and was used for important infrastructure projects such as the second Niger Bridge and the Lagos-Ibadan highway.
Olukoyede pointed out the technical, legal and political obstacles that make it difficult to trace, freeze and repatriate illicit funds. He therefore emphasized the need for African countries to have a solid legal framework in place and called for greater coordination and cooperation at national, regional and international level. He also advocated the use of advanced technologies such as data analytics, blockchain and artificial intelligence to improve asset tracing and repatriation. Above all, however, he called for strong international pressure to ensure cooperation between tax havens and low-tax countries.
The Pan-African Conference on Illicit Financial Flows and Taxation, which began in Tunis on June 26 and concludes today, June 28, aims to address the challenge of illicit financial flows from Africa, which undermine economic development and the ability of governments to provide answers to populations largely made up of young people who see their futures threatened by corruption and bad governance. (LM) (Fides Agency 28/6/2024)

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