ICPC: Nigeria loses $10bn to illicit financial flows annually

The Independent Corrupt Practices and Other Related Offences Commission (ICPC) says Nigeria loses $10 billion to illicit financial flows (IFFs) every year.

According to Bolaji Owasanoye, the ICPC chairman, this figure represents 20 percent of the $50 billion that Africa is losing to IFFs.

Owasanoye, ICPC chairman, was speaking at a virtual meeting to review the report on IFFs in relation to tax on Wednesday.

He explained that taxation plays a crucial role in the country’s political economy.

“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,” he said.

“Taxes play a very strategic role in the nation’s political economy and a very crucial focus in curbing illicit fund flows and ease of doing business in Nigeria.”

Owasanoye said the objective of the virtual meeting was to improve awareness of IFFs, especially in areas of taxation.

In his remarks, Muhammad Nani, executive chairman of the Federal Inland Revenue Service (FIRS), 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 said tackling IFFs would expand the country’s tax base and improve revenue generation which was required for the development.

The commission also urged all ministries, departments and agencies (MDAs), as well as the organised private sector to work together to help curb the estimated $10 billion IFFs out of the country.