Nigeria’s Losses to Illicit Financial Flows and the Path to Recovery

Rev. David Ugolor highlighted that Nigeria lost nearly $40 billion to illicit financial flows from 2001 to 2010, contributing to a larger African loss of $148 billion annually. The Civil Society Summit emphasized the need for stronger asset recovery measures, legal frameworks, and CSO involvement to enhance transparency and accountability in managing recovered funds.

Rev. David Ugolor, Executive Director of the Africa Network for Environment and Economic Justice (ANEEJ), disclosed that Nigeria lost nearly $40 billion to illicit financial flows from 2001 to 2010. This contributes to the staggering $148 billion stolen annually across Africa. The importance of strong asset recovery measures and effective legal frameworks was underscored, indicating a risk of mismanagement that could hinder national development.

During the Civil Society Summit on Asset Recovery and Management in Abuja, Ugolor acknowledged Nigeria’s advancements in recovering stolen assets, citing significant repatriation efforts, including the $322.5 million Abacha loot in 2017, which was directed towards programs benefiting citizens and the $311.8 million recovered in 2020 for infrastructure projects. However, he cautioned against a lack of transparency regarding the recent handling of the Diezani loot, advocating for Civil Society Organizations’ (CSOs) involvement in monitoring.

Ugolor emphasized the ongoing challenge, stating, “The challenge before us remains vast. The United Nations and African Union estimate that nearly $40 billion left Nigeria… in just a decade, and across Africa, the figure stands at $148 billion annually.” He called for institutionalizing best practices in asset recovery to ensure that recovered funds are utilized effectively for public benefit.

Dr. Femi Ajayi from the United Nations Office on Drugs and Crime (UNODC) echoed the necessity of a comprehensive approach to counter illicit financial flows, asserting that combating corruption necessitates collaboration among government entities, international organizations, and Civil Society. He assured UNODC’s continued support for Nigeria in enhancing financial transparency.

Barrister Pere Ikuetemi represented the Permanent Secretary of the Federal Ministry of Justice, commending ANEEJ’s efforts in fostering dialogue between Civil Society and the government. He acknowledged that strengthening Nigeria’s asset recovery framework is essential to safeguard recovered funds from misappropriation, indicating, “Asset recovery is a crucial aspect of Nigeria’s fight against corruption.”

The summit included a presentation by the Economic and Financial Crimes Commission (EFCC) about adherence to the Proceeds of Crime Act and facilitated a discussion on effective strategies for asset recovery and management in Nigeria. ANEEJ’s Asset Recovery Research Project highlighted the necessity for Civil Society to take a proactive role in tracking recovered assets and ensuring accountability.

Participants emphasized the joint culpability of those who benefit from stolen funds alongside the perpetrators. They concluded that with billions lost to illicit financial flows, prioritizing transparency and efficiency in asset recovery is paramount to combat corruption and advance national development efforts.

In summary, the significant financial losses to illicit flows in Nigeria and across Africa necessitate urgent action in asset recovery and management. Enhanced legal frameworks and Civil Society oversight are essential to prevent mismanagement of recovered funds and ensure accountability. Concerted efforts among government entities, international organizations, and Civil Society are critical to strengthening the fight against corruption and fostering national development.

Original Source: nigerianobservernews.com