Nigeria Loses $400bn to Illicit Financial Flows, Says Malami

The Attorney-General of the Federation and Minister of Justice, Abubakar Malami (SAN), yesterday decried the level of illicit financial flows, noting that Nigeria has lost over $400 billion to some foreign havens.

The funds, according to the AGF were either stolen or expatriated by corrupt leaders and their foreign accomplices, including multinational companies.

A statement from Malami’s Media aide, Dr. Umar Gwandu said Malami made the disclosure while speaking at the eighth session of the Conference of States Parties to the United Nations Convention Against Corruption in the United Arab Emirate (UNCAC), taking place from December 16 to 20, 2019.

According to the minister, Nigeria noted with great concern the incidence of illicit financial flows which go through the financial systems annually, particularly from developing to developed economies.

“The quantum of these illicit flows which are majorly proceeds of crime undermines local currencies, constitutes a threat to the economy, and enhances the risk of huge amounts of money flowing into channels such as organised crimes and terrorism”.

He said the government has taken drastic measures to address the problem in order to ensure that Nigerian financial institutions and banks are not used as conduits for these illicit transactions. “To dissuade the perpetrators of this anomaly including financial institutions who act as enablers, State Parties should ensure that illicit financial flows, when tracked, do not remain in the custody of enabling financial institutions, but should be transferred into escrow account, preferably in Development Banks pending return to countries of origin,” he said.

According to the minister, “bad eggs among public officials have been compromised by multinational companies and our resources looted and diverted through inflated contracts”.

Malami noted that with the return of democratic governance in 1999, the country has recorded significant progress in the fight against corruption.

“We have enacted legal frameworks and established several dedicated institutions focused on preventing and combatting diverse manifestations of corruption”.