Nigerian Foreign Affairs Minister, Yusuf Tuggar, yesterday, said corruption in Africa is closely tied to illicit financial flows.
The Minister also called for cooperation that would enable the return of stolen crude oil from London.
According to him, African countries lose an estimated $8.6 billion yearly to illicit financial flows.
He added that the amount was equivalent to around three per cent of the continent’s Gross Domestic Products.
Speaking at the 6th Annual General Assembly of the Network of Anti-corruption Institutions in West Africa, the minister said the funds were often hidden in tax havens and opaque financial systems.
Stating the disadvantage of illicit financial flows, the minister noted that it weakens economies, deprives governments of essential revenue, and causes poverty.
Tuggar said, “On a continental level, the menace of corruption is intimately tied to illicit financial flows, which siphon billions of dollars from Africa every year. The continent loses an estimated $8.6 billion annually to illicit financial flows, equivalent to around 3% of Africa’s GDP.
“These funds, often hidden in tax havens and opaque financial systems, represent stolen resources that could have been used to build schools, hospitals, roads, and other critical infrastructure. Illicit financial flows weaken our economies, deprive governments of essential revenue, and deepen the cycle of poverty and suffering. The link between illicit funds and insecurity is clear”.
Tuggar said regional cooperation alone is not enough to curb illicit financial flows in the continent.
He stressed that the international community must support Africa’s efforts by ensuring transparency in local financial systems and ending the provision of safe havens for illicit funds.
He said, “The global nature of financial systems means that the fight against corruption and illicit financial flows must also be pursued at the global level.
“The United Nations Resolution on Tax Cooperation, championed by Nigeria on behalf of the African group, is a landmark initiative calling on countries to work together to improve international tax cooperation, greater transparency, and the elimination of safe havens that allow for the squirrelling away of ill-gotten gains.
“Paying local taxes and tackling the transfer price system that multinationals use to evade them requires a global consensus. The international community must support Africa’s efforts by ensuring that local financial systems are transparent.
“It must stop providing safe havens for ill-gotten funds. This requires a commitment from all nations, particularly those that host financial centres”.
