Illicit Financial Flows: African Governments urged to synergize with international community

The Nigerian government has advocated the need for African countries to develop better synergy with Europe, America, Asia and other multilateral organizations for the eradication of illicit financial flows and ensure assets recovery of stolen wealth.

 

Nigeria’s Minister of Finance Budget and National Planning, Mrs Zainab Ahmed, made this known at a virtual international conference on Illicit Financial Flows (IFFs) and Asset Recovery held in Abuja, Nigeria.

 

Mrs Ahmed advocated the need for multilateral organizations to develop specific rules and processes to manage and prevent illicit financial flows.

 

The two-day international conference on Illicit Financial Flows (IFFs) and Asset Recovery is jointly organized by Nigeria’s anti-corruption agency, Independent Corrupt Practices Commission ICPC, Inter-Agency Committee on Stopping illicit financial flows from Nigeria, African Union Advisory Board on Corruption (AUABC) and the Coalition for Dialogue on Africa (CoDA).

 

According to Nigeria’s finance Minister, Mrs. Zainab Ahmed, represented by the Permanent Secretary Aliyu Shinkafi, “Illicit Financial Flows (IFFs), unless checked, will continue to significantly erode domestic revenues, enable corruption, threaten economic stability and sustainable development as well as divert money from public priorities and hamper Government’s efforts to mobilize domestic resources.”

 

Mrs Ahmed said Nigeria and the African continent, would continue to suffer various forms of Illicit Financial Flows, tax evasion and other harmful tax practices, illegal export of foreign exchange, abuse of transfer pricing and trade mispricing, when illicit financial flows is not put to check.

 

The finance Minister encouraged the international community to explore and develop specific and targeted measures, which includes mutual legal assistance, to address barriers to international cooperation on illicit financial flows.

 

“With the recent United Nations Conference on Trade and Development (UNCTAD) report on the impact of illicit financial flows on African Development, we have a better appreciation for the scope and disproportionate impact of IFFs on African countries.

 

“Commercial tax evasion and other types of IFFs inevitably impact the allocation of already limited government funds, with disproportionate impact on public services benefiting women and youth.

“Consequently, curbing IFFS can lead to improvements in environmental, social, and economic development in Africa.”

 

Nigeria’s commitment:

 

The finance Minister said “as one of the most affected countries, Nigeria has demonstrated strong commitment to addressing illicit financial flows through our participation in the Open Government Partnership and the significant progress made in the extractive industry.

 

“We have demonstrated that technology-enabled improvements in tax collection and compliance help deter tax crime and facilitate public trust.

 

“Also, the mainstreaming of transparency and anti-corruption measures into economic-policy-making processes significantly reduces crime.

 

“Similarly, establishing an accurate, up-to-date and public beneficial ownership register; and strengthening the automatic exchange of tax information; helps address the commercial components of illicit financial flows.”

 

Attorney General and Minister of Justice, Abubakar Malami, represented by special assistant to President on justice reforms, Mrs Juliet Ebekaku, identified the use of asset recovery measures to trace, and identify corrupt funds and illicit financial flows, as well as transparent management of public funds as important urging the conference to consider the linkages and develop further recommendations on the way forward.

 

“Asset recovery in Nigeria is a priority anchored within the anti-corruption framework of the country.”

 

“It is no longer news that the problem of IFF is a global phenomenon and is presently one of the many challenges facing humanity. In fact, many scholars have identified it as the greatest obstacle to the realization of good governance and sustainable development goals.

 

“Developing countries that are mainly African countries are worse hit by the impact of IFF, where high-level corruption has plundered the national wealth,” Malami noted.

 

In his remarks, the Minister of State Foreign Affairs, Ambassador Zubairu Dada, represented by Mr Gabriel Aduda, said Nigeria will continue to call on leaders whose countries are the main destination for illicit financial flows to take concrete steps to prevent such funds into their countries and to assist in tracing, freezing, seizing and returning illicit assets and its proceeds already in their countries.

 

The Chairman independent corrupt practices commission ICPC Professor Bolaji Owasanoye encouraged the international community to develop good practices on asset return and support the Stolen Asset Recovery Initiative of the United Nations and the World Bank, and other international initiatives that support the recovery of stolen assets.

 

He said, “Nigeria’s little experience in local and international asset recovery is a modest source for study of the mechanics of asset recovery and return.

 

“This conference, therefore, offers an opportunity for participants to discuss IFFs, CAPAR, and asset recovery and proffer solutions to these critical barriers to resource mobilization and sustainable development.”

 

The African Union commissioner for political Affairs, peace and security, Mr. Bankole Adeoye, gave a goodwill message as participants from Europe, America, Carribean and Africa took part in the conference virtually.