Illicit financial inflows into Africa and Nigeria, according to Alhaji Shuaibu Idris, Chairman of the IoD Centre For Corporate Governance, are increasing foreign exchange issues and generating economic losses.
Idris stated that it was critical for all stakeholders to work together to address the issue and decrease the economic impact of the influx.
He made the remarks at the IoDCCG stakeholder roundtable in Lagos on ‘A public/private sector dialogue on strengthening anti-money laundering/counter-terrorist financing and curbing illicit financial flows in Nigeria and West Africa,’ which was organized by the Center for International Private Enterprise, CIPE, USA, and the Institute of Directors Centre for Corporate Governance.
Different stakeholders attended the event, which was hosted both physically and electronically, and brainstormed about the topic.
“Illicit financial flows are a matter of survival for Africa’s growth,” he remarked. Africa not only loses around 5% of its GDP each year to illicit capital flows, but the expansion of illicit financial flows also facilitates terrorist activities and insecurity in the Lake Chad region, which encompasses Nigeria and stretches into the Sahel region.”
As a result, the losses in economic growth, trade opportunity, and social development are incalculable. This depletes Africa’s foreign exchange reserves, hinders efforts to increase domestic resource mobilization, reduces investment inflows, and contributes to low social development indicators such as poverty and inequality.”
The Institute of Directors Nigeria, the Securities and Exchange Commission, and the Corporate Affairs Commission collaborated on the IoDCCG, he said.
