Finance Minister Mrs. Kemi Adeosun has called for greater collaboration between African governments and the international community to check illicit financial flows (IFFs), to drive revenue growth and improve efficiency in government.
Speaking yesterday at the IMF Spring Meetings in Washington D.C, she said there was need to check IFFs from Africa, to enhance governments’ revenue and deliver sustainable economic growth.
“The government is focused on resetting the Nigerian economy. To improve non-oil revenues, we have to address illicit capital flows. When stolen money is transferred from Nigeria or other African countries, there are too few questions asked by those countries that receive the funds. But when we identify those funds as stolen and seek to recover them, there are too many questions being asked,” she said.
Adeosun added that a lot of funds are sitting in foreign banks which government has spent over a decade trying to recover.
“That is money that could deliver significant value for Nigeria as we seek to increase spending on critical infrastructure and establish a basis for long term sustainable growth. I hope that the Automatic Exchange of Information scheme coming into force next year will be a step towards achieving greater transparency,” she said.
“We need more collaboration among parliamentarians in Africa, and across the World to ensure that this situation improves and that recipient countries are held to account.”
On the domestic agenda to ensure significant reductions in ‘leakages’ of public funds, and improved efficiency in public expenditure, the minister said: “We are going after those who have stolen our money. We have put in place a very successful whistleblower programme that is delivering results, and allows those who report illicit activity to receive up to five per cent of any funds that we recover. We are also significantly improving our financial management controls to ensure that it is considerably more difficult for public funds to be diverted. We have to do more though”.
“That means collaboration with the legislature. We need tighter tax and financial reporting legislation and to ratify bilateral agreements so that our enforcement agencies are empowered to deliver the results that we need.”
The minister said to create the basis for long-term growth, government needs to invest in infrastructure.
“Achieving energy sufficiency and achieving agriculture and food security are two of the execution priorities we have identified in the Economic Recovery and Growth Plan and we are looking forward to advancing our ongoing conversations with multilateral lenders on these priorities over the coming days as we look to accelerate implementation,” she said.
Tag: Illicit financial flows
-
Adeosun seeks global backing against illicit financial flows
-
UN adopts Nigeria-sponsored resolution on financial flows
The Federal Government has said the United Nation’s adoption of Nigeria-sponsored resolution on combating illicit financial flows is in tandem with the anti-corruption crusade of President Muhammadu Buhari’s administration.
Foreign Affairs Minister, Geoffrey Onyeama, told the UN correspondent of the News Agency of Nigeria (NAN) in New York that the administration’s anti-corruption crusade now has international legal backing.
The UN General Assembly had adopted, by consensus, the Nigeria-sponsored resolution on: “Promotion of international cooperation to combat illicit financial flows in order to foster sustainable development.”
The resolution reiterated “its deep concern about the impact of illicit financial flows, in particular those caused by tax evasion and corruption, on the economic, social and political stability and development of societies.”
Onyeama said the adopted resolution would greatly facilitate Nigeria’s efforts to have some of its funds stashed in foreign financial institutions, repatriated back to the country.
“The adoption of the Resolution on Illicit Financial Flows is something that is in sync with the anti-corruption policy of this administration,” he said.
“Also, I think we have to congratulate Mr. President because what he has promised to do is to now take this whole issue and get it at the top of the international agenda.
“Getting the anti-corruption crusade at the top of the international agenda is no mean feat.
“So we are really delighted that there is now some international legal backing for this crusade.
“We certainly hope to draw on this resolution to help us in our efforts to have restitution of a lot of Nigerian funds that have been stashed away in foreign countries.”
-
Mbeki panel to Nigeria, others: stop illicit financial flows
•Forum hails Buhari, Osinbajo for assets’ declaration
AFRICAN Union (AU)/ United Nations Economic Commission for Africa’s (UNECA) High Level Panel on Illicit Financial Flows (IFFs), led by former South Africa’s President Thabo Mbeki and key policy-makers have alerted Nigeria and other continental leaders to the rising cases of IFFs from Africa, from the initial $50 billion yearly.
At a two-day “First Subregional Workshop on Curbing IFFs from Africa”, in Nairobi, Kenya, the panel members and delegates said new and innovative ways of generating IFFs were emerging and African leaders must stop the menace through political measures.
The forum, which stressed the need for transparency in tackling IFFs, hailed President Muhammadu Buhari and Vice President Yemi Osibanjo for declaring their assets and urged other African leaders to follow their steps.
The ex-South Africa’s president and other speakers contended that commercial routes of IFFs needed closer monitoring.
They argued the need for capacity and institutional building, and stricter legislation since African countries depend mainly on their extractive industries.
The Director of UNECA’s Capacity Development Division, Dr. Adeyemi Dipeolu, who presented the panel’s new findings, noted that new and innovative means of generating IFFs were emerging.
“Tax incentives granted by African countries are not usually guided by cost-benefit analyses; corruption and abuse of entrusted power still remain a continuing concern.
“African countries need to stimulate and expedite the asset recovery and repatriation,” he said.
Dipeolu added: “Money laundering continues to require attention; weak national and regional capacities in Africa impede efforts to curb illicit financial flows; absence of a global and continental frameworks for addressing IFFs that speak to African interests; financial secrecy jurisdictions must come under closer scrutiny; development partners have an important role in curbing IFFs from Africa; IFF issues should be incorporated and better coordinated across UN processes and frameworks.”
The Executive Secretary of African Capacity-Building Foundation (ACBF), Prof. Emmanuel Nnadozie, one of the key organisers of the workshop, said the AU’s agency would contribute to the validation of the programme document under preparation to tackle IFFs.
“ACBF wishes to play a critical role in coordinating and building capacity of countries in their efforts to stem IFFs.
“It will also support joint activities with partners, such as sub-regional workshops, implement capacity needs assessment initiatives to curb IFFs, design appropriate capacity development intervention and contribute to the effort for resources mobilisation,” he said.
The workshop was organised by UNECA, ACBF, Open Society Initiative for West Africa (OSIWA) and others to consider ways of implementing the findings of the panel and seek global cooperation.
The Mbeki panel, which included nine members, was created by the Joint AU and UNECA Conference of Ministers of Finance, Planning and Economic Development and inaugurated in February 2012 in Johannesburg, South Africa.
It was urged to determine the nature and patterns of IFFs; establish the level of such outflows and assess their complex and long-term implications.
The panel was also asked to consult and sensitise African governments and other stakeholders, including development partners, on the scale of the issue and propose policies and mobilise support for practices that would reverse these outflows.
Its setting up was based on a report from Global Financial Integrity (GFI), a Washington D.C., United States (U.S.)-based research and advocacy organisation that Africa lost about $854 billion in IFFs from 1970 through 2008.
The GFI report also claimed that total illicit outflows might be as high as $1.8 trillion.
The panel submitted its 122-page report to the summit of AU Heads of States and Governments in Addis Ababa, Ethiopia, in January.
Nigeria topped four other countries in IFFs with $89.5 billion as the highest outflow measured followed by Egypt ($70.5 billion), Algeria ($25.7 billion), Morocco ($25 billion), and South Africa ($24.9 billion).
The report said IFFs played a large and detrimental role in the challenge of resource generation.
In the case of Nigeria, it said: “We remain concerned about the effectiveness of the relevant institutions, including the lack of cooperation and coherent operations among the various agencies”.
-
ADFIX: Illicit financial flows, others top agenda
THE ninth African Development Forum (ADFIX), with the theme, “Innovative Financing for Africa’s Transformation,” entered its crucial stage yesterday in Marrakesh, Morocco.
Within the firts two days of the five-day summit, critical issues affecting the continent, including raising private equity, illicit financial flows, domestic resource mobilisation, new partnerships and climate financing, have featured prominently on the agenda of discussions.
The flagship event, which is being organised by the United Nations Economic Commission for Africa (ECA) – the leading think-tank and policy advisory body for the continent – began with African leaders, policy-makers and the continent’s development partners in attendance.
President of Ivory Coast Alassane Ouattara, his Senegalese counterpart, Macky Sall and the Prime Minister of Cape Verde, José Maria Neves alongside hosts, the Executive Secretary of ECA, Carlos Lopes and the Prime Minister of Morocco Abdelilah Benkirane, opened the summit setting the agenda for attendees.
Welcoming the guests, Benkirane said he was pleased that the forum was being held in Morocco, praising ECA for holding the session outside its Addis Ababa headquarters for the first time.