EFCC Chairman Highlights $88.6 Billion Annual Loss to Illicit Financial Flows in Africa
The Executive Chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Olanipekun Olukoyede, revealed that Africa loses an astonishing $88.6 billion annually to illicit financial flows. He made this announcement during his keynote address at the Pan-African Conference on Illicit Financial Flows (IFFs) and Taxation in Tunis, Tunisia on June 27, 2024.
Speaking on the theme “Africa’s Tax Agenda in Combatting Illicit Financial Flows: From Words to Action,” Olukoyede stressed the severe impact of IFFs on Africa’s economic stability and development. He highlighted that these funds, if retained, could significantly boost infrastructure, healthcare, and education across the continent.
The conference gathered key stakeholders to explore innovative strategies for asset recovery and financial reintegration in Africa. Olukoyede emphasized the role of the Common African Position on Asset Recovery (CAPAR) in fostering a united front among African nations. He also pointed out the significance of international cooperation, citing the Stolen Asset Recovery Initiative (StAR), a collaboration between the World Bank and the United Nations Office on Drugs and Crime (UNODC), as crucial in these efforts.
Highlighting success stories, Olukoyede mentioned Nigeria’s recovery of $311 million of the Abacha loot from the United States in 2020. This recovery was made possible through international partnerships and has been earmarked for key infrastructure projects such as the Second Niger Bridge and the Lagos-Ibadan Expressway. He underscored how these funds are being used for developmental projects in line with the African Union’s Agenda 2063.
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Olukoyede also shared insights from the recent high-level technical stakeholders meeting held in Addis Ababa from May 28-30, 2024. Organized by the African Union Advisory Board against Corruption (AUABC) and the African Union Commission – Political Affairs, Peace and Security Department (AUC-PAPS), in collaboration with the GIZ Global Program on Illicit Financial Flows (GP-IFF), this meeting focused on establishing the Pan-African Asset Recovery Practitioners Forum.
Discussing the challenges in asset recovery, Olukoyede pointed to technical, legal, and political obstacles that hinder the tracing, freezing, and repatriating of illicit funds. He called for the strengthening of legal and institutional frameworks across African countries to better combat IFFs.
Additionally, Olukoyede emphasized the need for capacity building, robust legal frameworks, and enhanced coordination and cooperation at national, regional, and international levels. He advocated for the adoption of advanced technologies such as data analytics, blockchain, and artificial intelligence to improve asset tracking and recovery efforts.
In concluding his address, the EFCC Chairman called for continuous advocacy and international pressure to secure cooperation from tax havens and low-tax jurisdictions. He stressed the importance of preventing resources from leaving Africa initially, urging collective action to turn words into concrete measures for the continent’s progress.
The Pan-African Conference on Illicit Financial Flows and Taxation, running from June 26-28, 2024, aims to tackle the significant challenge of IFFs from Africa, which undermine economic development and governance. The event provides a platform for sharing success stories, identifying obstacles, and formulating strategic recommendations to enhance Africa’s capacity to combat IFFs and reclaim its assets.
