By Adeyemi Adekunle
In a stark revelation, the Economic Community of West African States (ECOWAS) has disclosed that Africa loses approximately $88.6 billion each year to corruption and illicit financial flows (IFFs), amounting to 3.7% of the continent’s Gross Domestic Product (GDP).
Ambassador Abdel-Fatau Musah, ECOWAS Commissioner for Political Affairs, Peace, and Security, highlighted this alarming statistic during a regional certification training on financial investigation for anti-corruption institutions in Niger State. Represented by Ebenezer Asiedu, Head of the Democracy and Good Governance Division, Musah emphasized that corruption and financial crimes are significant impediments to economic and social development in West Africa and globally.
“As the financial industry experiences growth in West Africa, the increasing adoption of cryptocurrencies and other emerging forms of online financial systems have introduced new risks and vulnerabilities across member states,” Musah noted. This underscores the urgent need for anti-corruption institutions to develop specialized skills and knowledge to effectively combat these evolving crimes.
In a related development, Ola Olukoyede, Chairman of Nigeria’s Economic and Financial Crimes Commission (EFCC), has called on Commonwealth nations to emulate Nigeria’s proactive reforms and collaborative strategies in combating financial crimes. Speaking at the Commonwealth Law Conference in Malta, Olukoyede discussed the topic “Combating Financing of Terrorism and Proliferation Financing:
Has FATF Enhanced Monitoring Made any Difference in Non-Compliant Countries?” He asserted that Nigeria’s experience under the Financial Action Task Force’s (FATF) enhanced monitoring framework has not only improved compliance but also fostered a resilient financial system capable of disrupting terrorism financing and proliferation activities.
Olukoyede further urged Commonwealth nations to advocate for greater consideration for sub-Saharan African countries, many of which remain on the FATF’s enhanced monitoring list. He emphasized the importance of high-level political commitment, proactive compliance measures, capacity building, technological adoption, public-private partnerships, and continuous international engagement as key lessons from Nigeria’s approach.
These developments highlight the critical need for concerted efforts and international collaboration to address the pervasive issue of corruption and illicit financial flows that continue to undermine Africa’s economic stability and development.
