Illicit financial flows are siphoning away the nation's revenue and depleting foreign reserves, warn
Prof. Bolaji Owasanoye, the Chairman of the Independent Corrupt Practices and Other Related Offences Commission (ICPC), highlighted that Illicit Financial Flows (IFFs) are depleting the nation's foreign reserves and revenue. He made this statement during a hybrid sensitization workshop held on Thursday in Abuja. The workshop centered around the recently published "Guidelines for Private Sector Response to Vulnerabilities Caused by Illicit Financial Flows (IFFs) in Nigeria," organized by the Commission.
He explained that these illicit financial flows have led to a depreciation in the exchange rate, contributed to inflation, and raised the costs associated with servicing external debts.
"It is exerting a negative impact on the cost of imported goods such as petroleum, consequently leading to significant repercussions on the daily lives of ordinary citizens," he expressed.
Owasanoye emphasized the urgency for a comprehensive approach to address this issue across all its manifestations, aiming to bolster Nigeria's efforts to augment domestic revenue in proportion to its economic size.
He affirmed the Commission's steadfast commitment to practical strategies aimed at enhancing Nigeria's capacity to curb Illicit Financial Flows (IFFs) and curtail capital flight. This approach, he elaborated, would also empower the country to bolster its ability to generate domestic resources by pinpointing vulnerabilities and shortcomings within both public and private sector entities.
Furthermore, Owasanoye noted that this process would involve offering guidance on reforms to mitigate losses.
He underscored that the workshop was organized to gather input from the private sector constituents, ensuring their perspective on potential challenges in implementing the recommendations provided in the guidelines.
Additionally, he indicated that a comparable platform would be established for public officials and other stakeholders to engage in discussions concerning the Guidelines for the Negotiation of Contracts and Agreements.
Mr. Zacch Adedeji, the Special Adviser to the President on Revenue, stated that the government is committed to enhancing its efforts in combatting illicit financial flows.
Adedeji expressed deep concern over the substantial erosion of domestic revenues due to Illicit Financial Flows (IFFs), impeding the government's endeavors to gather resources.
He emphasized that this situation poses a direct threat to the economic stability and sustainable progress of the nation.
"In Nigeria and throughout the African continent, the challenges posed by IFFs manifest in various ways, encompassing activities such as tax evasion, detrimental tax practices, unauthorized foreign exchange export, and exploitative transfer pricing. Additionally, we face issues like trade mis-pricing, service invoicing discrepancies, unlawful exploitation, under-invoicing of natural resources, organized criminal activities, and corruption," he elaborated.
He underlined the significance of curbing illicit financial flows, highlighting how doing so would mitigate its adverse effects on the global development agenda and tackle governance challenges.
Providing insights into the published guidelines was Mrs. Lola Adekanye, the Programme Director (Africa) at the Centre for International Private Enterprise (CIPE). Meanwhile, Mrs. Ayotola Jagun, the Chief Compliance Officer and Company Secretary at Oando Plc, presented an outline of the private sector's approach towards implementing the guidelines.
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