Africa Loses $50 Billion Annually to Illicit Financial Flows, Warns Nigerian Anti-Graft Agency
ABUJA, Nigeria – Africa is being bled of over $50 billion each year through illicit financial flows, creating a “silent crisis” that is starving the continent of vital funds for development, Nigeria’s anti-corruption agency has warned.
The Independent Corrupt Practices and Other Related Offences Commission (ICPC) stated that this massive outflow of capital, lost to crimes like tax evasion, corruption, and money laundering, directly deprives nations of money critically needed for essential services like schools, hospitals, and infrastructure.
In a stark assessment, the agency detailed how a combination of illegal activities is hampering Africa’s growth. “Tax evasion, corruption, illegal mining, wildlife trafficking, money laundering, and cybercrime are creating a silent crisis for Africa’s development,” the ICPC warned.
The commission provided concrete examples from its own investigations within Nigeria, revealing sophisticated schemes used to divert public funds.
In one case involving multinational companies, the ICPC uncovered a practice where firms were artificially inflating costs to avoid paying their fair share of taxes. One such investigation revealed a tax evasion scheme so large that the lost revenue would have been sufficient to construct a fully-equipped modern hospital.
The agency also uncovered corruption within the public sector, where officials diverted government money through complex networks of multiple bank accounts. Furthermore, the ICPC exposed “ghost-worker” schemes, where salaries are collected for non-existent employees, effectively stealing directly from the public purse.
The loss of $50 billion a year represents a devastating drain on the continent’s economy. This figure underscores the scale of the challenge facing African governments and anti-corruption bodies as they work to secure resources for sustainable development and improve the living standards of their citizens.
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