Nigeria loses $10bn to illicit financial flows, says ICPC

The chairman of the Independent Corrupt Practices and Other Related Offences Commission (ICPC) Prof. Bolaji Owasanoye has revealed that Nigeria accounts for 20 percent (about $10 billion) of the estimated $50 billion that Africa was losing to Illicit Financial Flows (IFFs).

Owasanoye made the disclosure in his welcome remark at a physical and virtual zoom meeting to review the report on IFFs in relation to tax.

According to the ICPC chairman, “The African Union Illicit Financial Flow Report estimated that Africa is losing nearly $50 billion through profit shifting by multinational corporations and about 20 percent of this figure is from Nigeria alone.”
The ICPC boss explained that taxes were a “very strategic role in the nation’s political economy.”

Against this backdrop, he underscored the importance of the meeting, noting that it would afford participants the opportunity to openly discuss how to effectively use the instrumentality of taxation to curb IFFs through “risk-based approach to monitoring and audit; due process in tax collection; structured tax amnesty framework especially that which is skewed in the public interest; data privacy; timely resolution of audits and payment of tax refunds; and intelligence sharing among revenue-generating; regulatory; and law enforcement agencies.”

The ICPC boss stated that for the contemporary tax man to remain relevant, he must build his capacity in areas of technology management, solution architects, and an astute relationship manager.

He, therefore, pointed out that the objective of the meeting was to improve the awareness of IFFs, especially in the areas of taxation.

Chairman of Federal Inland Revenue Service (FIRS), Muhammad Nami, expressed concerns that IFFs pose a serious threat to the Nigerian economy as the act robs the nation of resources that are needed for development.
Nami declared that tackling IFFs would expand the country’s tax base of the Nigerian nation and improve revenue generation which was required for the development.

He consequently pushed for policy reforms that would make it difficult for “capital flights” from occurring so that the country would be placed on the path of growth.

Other discussants at the event who spoke with one accord, identified a weak regulatory framework, an opacity of the financial system, and lack of capacity amongst others as some of the factors that fuel IFFs.

The discussants again unanimously emphasized the need for capacity building of relevant stakeholders as one of the ways to stamp out illicit flows.

They, therefore, commended ICPC for leveraging its corruption prevention mandate to open a new vista in IFFs discourse in Nigeria.