Legal and political hurdles are among major factors that complicate the process of tracing, freezing, and repatriating illicit funds as an over $88.6 billion is estimated to be lost to illicit financial flows in Africa annually.
This was made known on Thursday by the Economic and Financial Crimes Commission, EFCC, Chairman, Ola Olukoyede while delivering a keynote address at the Pan-African Conference on Illicit Financial Flows and Taxation holding in Tunis,Tunisia.
Speaking on the theme “Africa’s Tax Agenda in Combatting Illicit Financial Flows: From Words to Action,” the EFCC’s boss emphasised the grave challenge posed by Illicit Financial Flows to Africa’s economic stability and development. He noted that over $88.6 billion is illicitly siphoned from the continent annually, funds that could otherwise be channeled towards critical infrastructure, healthcare, and education.
At the conference that brought together key stakeholders to discuss pioneering approaches to asset recovery and financial reintegration in Africa, Olukoyede discussed the role of the Common African Position on Asset Recovery in providing a unified stance for Africa. He stressed the importance of international cooperation, citing the Stolen Asset Recovery Initiative which is a partnership between the World Bank and the United Nations Office on Drugs and Crime as pivotal in facilitating these efforts.
The EFCC Chairman shared notable success reports, including Nigeria’s repatriation of $311 million of the Abacha loot from the United States in 2020. This recovery, he says was achieved through collaboration with international partners and has been allocated to vital infrastructure projects such as the Second Niger Bridge and the Lagos-Ibadan Expressway. Olukoyede detailed how Nigeria is utilising the funds for developmental projects aligned with the African Union’s Agenda 2063.
Olukoyede also incorporated outcomes from the recent high-level technical stakeholders meeting which held in Addis Ababa from May 28-30, 2024. The meeting was organised by the African Union Advisory Board against Corruption and the African Union Commission – Political Affairs, Peace and Security Department in collaboration with the GIZ Global Program on Illicit Financial Flows focused on the establishment of the Pan-African Asset Recovery Practitioners Forum.
The EFCC Chairman stressed the need for capacity building, robust legal frameworks, and enhanced coordination and cooperation at national, regional, and international levels as he advocates the use of advanced technologies such as data analytics, blockchain, and artificial intelligence to improve asset tracking and recovery efforts.
The anti-graft czar called for continuous advocacy and international pressure to ensure cooperation from tax havens and low-tax jurisdictions. He emphasised the importance of stopping resources from leaving Africa in the first place, urging collective efforts for the betterment of the continent.
The Pan-African Conference on Illicit Financial Flows and Taxation is holding from June 26 to 28 this year and aims to address the significant challenge of Illicit Financial Flows from Africa which undermine Economic Development and Governance. The event provides a platform for sharing success stories, identifying obstacles, and formulating strategic recommendations to enhance the continent’s capacity to combat illicit financial flows and reclaim its assets.
(Editor: Terverr Tyav)
