Africa loses $88.6b annually to illicit financial flows
By Patience Ikpeme
Recent estimates reveal that Africa loses a staggering $88.6 billion annually to these illicit activities, with Nigeria bearing a significant portion of the burden, accounting for approximately 20% of these losses.
These outflows not only deplete the continent’s resources but also severely impede its ability to invest in essential infrastructure and services for its citizens.
Addressing key stakeholders at the United Nations Headquarters in New York, Dr. Uzoka-Anite, Minister of state for finance highlighted Nigeria’s unwavering commitment to tackling these challenges, stating, “These illicit financial flows (IFF) are a major obstacle to our development, depriving our citizens of essential services and infrastructure. We must work together to ensure that our resources are utilized for the benefit of our citizens.”
She noted that Nigeria’s dedication to multilateral cooperation is evident in its championing of the Common African Position on Asset Recovery (CAPAR) and its support for the UN Framework on international tax cooperation. Dr. Uzoka-Anite affirmed, “Nigeria remains committed to multilateral cooperation through our championing of the Common African Position on Asset Recovery (CAPAR) and supporting the UN Framework on international tax cooperation.” These initiatives underscore the nation’s proactive approach to combating IFFs on a global scale.
Enhancing beneficial ownership transparency and improving information sharing across borders are crucial steps in making asset recovery more efficient. Dr. Uzoka-Anite emphasized the importance of equity in global financial systems, stating, “True progress requires equity in global financial systems. We must work together to build better systems that ensure resources remain where they belong – financing sustainable development for our citizens,”. This call for equity resonates with the need for a level playing field in international finance, where resources are not siphoned away from those who need them most.
Nigeria’s commitment to collaborating with international partners is unwavering in the pursuit of a more equitable and sustainable financial system. Dr. Uzoka-Anite reiterated, “By working together, we can ensure that resources are utilized for the benefit of all citizens rather than being siphoned off through illicit means. We owe it to ourselves, our children, and future generations to take bold action against illicit financial flows and financial crime,”. This collaborative spirit is essential in addressing the transnational nature of IFFs, which require coordinated efforts from multiple stakeholders.
The fight against IFFs is not merely an economic imperative; it is a moral one. As Dr. Uzoka-Anite so eloquently stated, it is a matter of ensuring that resources are utilized for the benefit of all citizens, rather than being siphoned off through illicit means. This resonates with the principles of social justice and equity, which demand that all members of society have access to the resources they need to thrive.
Nigeria’s leadership in championing this critical cause serves as an inspiration to the international community. By joining forces in the fight against IFFs, nations can collectively work towards a brighter future for all, where resources are used to promote sustainable development and improve the lives of citizens. This collaborative approach is essential in addressing the complex challenges posed by IFFs, which require a coordinated response from multiple actors.
The consequences of IFFs extend far beyond mere financial losses. They fuel insecurity, terrorism, banditry, and human trafficking, exacerbating existing challenges and undermining stability. By addressing IFFs, nations can strike a blow against these criminal activities and create a more secure and prosperous environment for their citizens.
In conclusion, the fight against illicit financial flows is a critical undertaking that requires the collective efforts of nations, international organizations, and civil society. Nigeria’s leadership in this arena serves as a beacon of hope, demonstrating the power of commitment, collaboration, and a shared vision for a more equitable and sustainable future.
