Mr. Olanipekun Olukoyede, the Executive Chairman of the Economic and Financial Crimes Commission (EFCC), revealed that Africa loses a staggering $88.6 billion annually to illicit financial flows. He made this disclosure during his keynote address at the Pan-African Conference on Illicit Financial Flows (IFFs) and Taxation on Thursday, June 27, 2024.
Speaking on the theme “Africa’s Tax Agenda in Combatting Illicit Financial Flows: From Words to Action,” Olukoyede highlighted the severe impact of IFFs on Africa’s economic stability and development. He pointed out that these lost funds could significantly contribute to critical infrastructure, healthcare, and education across the continent.
The conference, held in Tunis, brought together key stakeholders to discuss innovative strategies for asset recovery and financial reintegration in Africa. Olukoyede emphasized the importance of the Common African Position on Asset Recovery (CAPAR) in presenting a unified approach for African nations. He also underscored the necessity of international cooperation, highlighting the role of the Stolen Asset Recovery Initiative (StAR), a partnership between the World Bank and the United Nations Office on Drugs and Crime (UNODC), in facilitating these efforts.
Olukoyede shared success stories, such as Nigeria’s repatriation of $311 million of the Abacha loot from the United States in 2020. This recovery, achieved through international collaboration, has been allocated to vital infrastructure projects, including the Second Niger Bridge and the Lagos-Ibadan Expressway. These initiatives align with the African Union’s Agenda 2063 for sustainable development.
He also referenced outcomes from a recent high-level technical stakeholders meeting in Addis Ababa, organized by the African Union Advisory Board against Corruption (AUABC) and the African Union Commission – Political Affairs, Peace and Security Department (AUC-PAPS), in collaboration with the GIZ Global Program on Illicit Financial Flows (GP-IFF). The meeting focused on establishing the Pan-African Asset Recovery Practitioners Forum.
Addressing the challenges in asset recovery, Olukoyede highlighted the technical, legal, and political hurdles that complicate the process of tracing, freezing, and repatriating illicit funds. He called for stronger legal and institutional frameworks across African countries to combat IFFs effectively.
Olukoyede stressed the need for capacity building, robust legal frameworks, and enhanced coordination at national, regional, and international levels. He advocated for the use of advanced technologies such as data analytics, blockchain, and artificial intelligence to improve asset tracking and recovery efforts.
Concluding his presentation, Olukoyede urged for continuous advocacy and international pressure to ensure cooperation from tax havens and low-tax jurisdictions. He emphasized the importance of preventing resources from leaving Africa, calling for collective efforts to turn words into action for the continent’s betterment.
The Pan-African Conference on Illicit Financial Flows and Taxation, running from June 26-28, 2024, aims to address the significant challenge of IFFs from Africa. The event provides a platform for sharing success stories, identifying obstacles, and formulating strategic recommendations to enhance the continent’s capacity to combat IFFs and reclaim its assets.
