Nigeria and indeed Africa is haemorrhaging in an organised crime, which is aided by the elites, multinational companies and modern technologies. Though blessed with huge resources, the management of these natural endowments has become the leading cause of the challenge confronting the nation, and the continent.
While the continent has found it difficult to add value to most of its resources by processing them before export, a large chunk of the earnings from crude resources sadly still find their way into private pockets through these illicit financial flows.
IFFs are regarded as illegal movements of money or capital from one country to another. This move classifies this movement as an illicit flow when funds are illegally earned, transferred, and/or utilised across an international border. Africa’s current loses to IFFs reportedly outweigh the continent’s aid and foreign direct investment as the prevailing development is further worsened by trade underpricing, mis-invoicing, oil theft and smuggling, weak regulations and enforcement.
In Nigeria, a report released earlier this year by the Nigeria Extractive Industries Transparency Initiative (NEITI) and Trust Africa indicated that Nigeria loses between $15b billion and $18b yearly to illicit financial flow, and over 92 per cent of the crime is reportedly committed in the oil and gas sector.
Source (Leadership, Sunday, June 9th, 2019.)