Weak Enforcement Fuels Illicit Financial Flows in Nigeria

During a workshop in Akwa Ibom State titled “Strengthening the Capacity of Civil Society Organisations (CSOs) and the Media to Contribute to the Fight Against Illicit Financial Flows in Nigeria,” stakeholders identified several factors contributing to Illicit Financial Flows (IFFs) in Nigeria. Aliyu M. Yusuf, a former director of Proceeds of Crime at the Economic and Financial Crimes Commission (EFCC), stated that weak enforcement, poor inter-agency coordination, fragmented data systems, and inadequate institutional capacity were major issues.

He noted that while Nigeria has a robust legal framework to combat IFFs, implementation remains a challenge. Yusuf defined IFFs as money illegally earned, transferred, or utilized across borders, including proceeds of corruption and tax evasion.

He emphasized that IFFs undermine Nigeria’s economic development by reducing government revenue and depriving resources needed for development. Key laws supporting the fight against IFFs include the Money Laundering (Prevention and Prohibition) Act 2022 and the EFCC Act, among others.

Key institutions involved include the EFCC, ICPC, NFIU, and Nigeria Customs Service.