Corruption: Weak enforcement, data gaps fuelling illicit financial flows – Stakeholders

Stakeholders at a workshop for journalists and civil society organisations (CSOs) in Akwa Ibom state Monday identified weak enforcement, poor inter-agency coordination, fragmented data systems and inadequate institutional capacity as major factors fuelling Illicit Financial Flows (IFFs) in Nigeria.

The stakeholders made the submission at a workshop titled, “Strengthening the Capacity of Civil Society Organisations (CSOs) and the Media to Contribute to the Fight Against Illicit Financial Flows in Nigeria.”

A former director of Proceeds of Crime at the Economic and Financial Crimes Commission (EFCC), Aliyu M. Yusuf, said Nigeria had developed a relatively robust legal and institutional framework to combat IFFs, but implementation remained a major challenge.

Yusuf described IFFs as money illegally earned, transferred or utilised across borders, including proceeds of corruption, tax evasion, money laundering, terrorism financing, trade mis-invoicing and organised crime.

He warned that illicit financial flows undermine Nigeria’s economic development by reducing government revenue, weakening governance and depriving the country of resources needed for development.

He said key laws supporting the fight include; the Money Laundering (Prevention and Prohibition) Act 2022, EFCC Act, ICPC Act, NFIU Act, Nigeria Customs Service Act, Nigeria Revenue Service Act 2025, Public Procurement Act, Terrorism Prevention Act and Petroleum Industry Act, among others.

He identified the EFCC, ICPC, NFIU, Central Bank of Nigeria, Nigeria Customs Service and revenue authorities as key institutions in the fight, but lamented shortages of skilled investigators and forensic experts, inadequate technology and weak regulation in some sectors.