Africa loses $88.6bn annually to illicit financial flows – Tuggar

Africa loses an estimated $88.6 billion annually to illicit financial flows, representing about three percent of the continent’s GDP, Yusuf Tuggar, Nigeria’s minister of foreign affairs has said.

Tuggar reported at the 6th annual general assembly of the Network of Anti-Corruption Institutions in West Africa (NACIWA), highlighting the devastating impact of corruption, tax evasion, and illegal transactions on Africa’s economic growth.

During the assembly held in Abuja on Monday, Tuggar described corruption as a ‘cancer’ deeply entrenched in African society.

He said the cost of corruption extends beyond financial losses, fueling insecurity, terrorism, banditry, and human trafficking. According to him, criminal gangs often exploit weak local governance, particularly in border areas, to operate illicit activities that further destabilise the region.

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Tuggar pointed out the intricate links between corruption and instability, particularly in regions plagued by violence such as the northeast of Nigeria, where Boko Haram operates, and the northwest, which is beset by banditry.

He said combating these issues requires following the money trail and reinforcing local governance.

Tuggar urged the international community to support Africa’s efforts by ensuring that global financial systems are transparent and that stolen funds are repatriated to their rightful jurisdictions.

Kashim Shettima, Nigeria’s vice president re-echoed Tuggar’s concerns, describing corruption as one of the most significant obstacles to the continent’s progress.

Shettima urged leaders across West Africa to confront this challenge with renewed vigour, highlighting the role of the ECOWAS Protocol against corruption in strengthening regional unity.

“The Nigerian government’s efforts to empower anti-corruption agencies and recommended that other states in the region follow suit”, Shettima said.

Ola Olu Kayode, chairman, Economic and Financial Crimes Commission (EFCC), highlighted the importance of the newly established NACIWA headquarters in Abuja, a donation from the Nigerian government. This facility, he said, represents a milestone in the fight against corruption, providing a solid operational base for the organisation.

The assembly underscored the need for regional cooperation in addressing the scourge of corruption.

He stressed that the implementation of the Economic Community of West African States (ECOWAS) Protocol against corruption was not merely a technical exercise but a moral imperative that demands dedication and innovative thinking.

They also highlighted the need for harmonising legal frameworks, enhancing cross-border cooperation, and embracing technology to detect and prevent corrupt practices.

Musa Aliyu, chairman, Independent Corrupt Practices Commission, (ICPC) emphasised that the fight against corruption must be intensified through digitalisation. He advocated for the effective use of technology to dismantle corruption networks and strengthen institutional performance across the region.

As Africa continues to lose billions of dollars to illicit financial flows, the assembly called for stronger international cooperation to curb these activities.

Stakeholders at the event emphasised that the fight against corruption is essential for preserving Africa’s resources, ensuring security, and upholding the dignity of its people.

The leaders agreed to work together to create a corruption-free continent, with a renewed commitment to regional unity and good governance.

Emmanuel Udende, chairman, Senate committee on anti-corruption and financial crimes, highlighted the ongoing threat corruption poses to governance and economic growth, stressing the importance of public trust in institutions.

He praised NACIWA’s establishment in 2010 as a milestone in regional anti-corruption efforts, noting its role in facilitating the exchange of best practices and developing innovative strategies.

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The ECOWAS Protocol against corruption, he added, serves as a vital framework for collective action across West Africa.

Udende called for continued support for the capacity and independence of anti-corruption institutions, including the legislature, to ensure accountability. He reiterated the Nigerian Senate’s commitment to enacting robust laws and overseeing government activities to combat corruption effectively.

“Our work in the Senate committee on anti-corruption and financial crimes is driven by the understanding that without a strong legal foundation, the efforts of our enforcement agencies would be severely undermined,” he said.

Abdel-Fatau Musah, ECOWAS commissioner for political affairs, peace, and security, representing ECOWAS President Omar Alieu Touray, echoed these sentiments. Musah said that corruption undermined sustainable development, good governance, and social justice, describing it as a ‘formidable adversary’ and a ‘cancer’ that weakens institutions and stifles economic growth.