Africa Loses $89 Billion Annually to Illicit Financial Flows

Tax experts revealed that Africa loses approximately $89 billion annually to illicit financial flows (IFF) during an interactive session with ECOWAS parliamentarians on Tuesday in Abuja. The loss is attributed to harmful tax practices, including tax evasion, tax avoidance, and misinvoicing, with commercial activities driving at least 65% of these flows.

The session emphasized the need for operationalizing ECOWAS tax directives and enhancing domestic resource mobilization to support sustainable development. Nita Belemaobgo, a representative from WATAF, highlighted the importance of political commitment and parliamentary oversight in implementing effective tax policies.

Daniciu Sengbeh stressed the necessity of tax harmonization across the region to improve accountability and reform outcomes. Solomon Adoga urged parliamentarians to enable laws that strengthen scrutiny in the mining sector and ensure local citizens benefit from resource management.

The session concluded with calls for a holistic approach to address IFF and improve domestic resource mobilization in African countries.