Nigeria’s $40 Billion Loss to Illicit Financial Flows: Insights…

Rev. David Ugolor revealed that Nigeria lost nearly $40 billion to illicit financial flows from 2001 to 2010. He emphasized the importance of robust asset recovery measures and warned against mismanagement of recovered funds. The Civil Society Summit highlighted both progress in asset recovery and the need for increased transparency and Civil Society oversight to enhance accountability and prevent future corruption.

Rev. David Ugolor, Executive Director of the Africa Network for Environment and Economic Justice (ANEEJ), reported that between 2001 and 2010, Nigeria lost nearly $40 billion to illicit financial flows. This problem significantly contributes to the estimated $148 billion stolen annually throughout Africa. He emphasized the necessity for stronger asset recovery measures and effective legal frameworks to ensure that recovered funds are adequately managed for the benefit of the citizens.

During the Civil Society Summit on Asset Recovery and Management in Abuja, Rev. Ugolor acknowledged Nigeria’s achievements in recovering stolen assets but expressed concern regarding existing loopholes. He highlighted the repatriation of significant funds, such as the $322.5 million from the Abacha loot in 2017, allocated to citizen investment programs, and $311.8 million recovered in 2020 for key infrastructure projects. Nonetheless, he criticized the lack of transparency in handling the recent Diezani loot, calling for increased Civil Society oversight to prevent mismanagement.

“The challenge before us remains vast,” stated Ugolor. “The United Nations and African Union estimate that nearly $40 billion left Nigeria through illicit financial flows in just a decade, and across Africa, the figure stands at $148 billion annually. These losses significantly hinder development and deepen poverty.” He urged the need to institutionalize best practices in asset recovery and utilize recovered resources effectively.

Dr. Femi Ajayi from the United Nations Office on Drugs and Crime (UNODC) echoed calls for a multi-faceted approach to combat illicit financial flows, highlighting that addressing corruption requires collaborative efforts among government, international organizations, and Civil Society. Ajayi confirmed UNODC’s commitment to bolstering Nigeria’s capacity in financial transparency and accountability through technical support and research.

Barrister Pere Ikuetemi, representing the Permanent Secretary of the Federal Ministry of Justice, praised ANEEJ’s role in facilitating government and Civil Society dialogue. He underscored the importance of reinforcing Nigeria’s asset recovery framework to avert re-looting of recovered funds. “Asset recovery is a crucial aspect of Nigeria’s fight against corruption, financial crimes, and illicit wealth accumulation,” Ikuetemi indicated, noting that significant challenges persist.

The summit also featured insights from the Economic and Financial Crimes Commission (EFCC) regarding compliance with the Proceeds of Crime Act and included discussions on enhancing asset recovery strategies. ANEEJ shared findings from its Asset Recovery Research Project, which evaluated asset management’s impact on communities, advocating for increased Civil Society involvement in tracking recovered funds.

Panelists underscored that individuals benefiting from stolen funds share culpability, encouraging Civil Society Organizations to unite for governmental accountability. Participants emphasized the need for prioritizing transparency and efficiency, warning that without sustained oversight, there is a risk of recovered funds being wasted or relapsed into corruption, thus thwarting efforts aimed at national development.

In conclusion, Rev. Ugolor’s assertions highlight the significant financial losses Nigeria endures due to illicit financial flows, necessitating stronger asset recovery protocols and greater involvement of Civil Society. The sentiments echoed during the summit reinforce the call for transparency, strict legal frameworks, and comprehensive oversight to combat corruption effectively. Emphasizing the importance of collaboration, the collective commitment is essential to ensure that recovered funds serve their intended purpose in promoting development and infrastructure in Nigeria.

Original Source: nigerianobservernews.com