Business & Strategy

Illicit Financial Outflows Drain $50bn Annually from Nigeria and Others

Written by Jerry Alomatu on July 18, 2024

News Views: 94

The Nigerian Shippers’ Council (NSC) has reported that Nigeria and other African countries are losing an estimated $50 billion annually due to illegal financial outflows. This revelation was made by the Executive Secretary and Chief Executive Officer of the NSC, Pius Akutah, during a recent debate competition in Lagos organized by National Youth Service Corps members in collaboration with industrial trainees from the council.

The event, themed “Effective Whistleblowers Protection Mechanism: A Critical Tool in the Fight Against Corruption,” highlighted the significant impact of illicit financial flows on the continent.

Represented by the NSC’s Director of Human Resources, Mrs. Ada Okam, Akutah emphasized that these illicit outflows severely affect the quality of life in Africa, hindering efforts to alleviate poverty and provide basic services. “From research, it is noted that Africa loses more than $50bn annually through illicit financial outflow,” Akutah stated.

He explained that these illegal outflows obstruct Africa’s growth and hinder the achievement of the African agenda and the Sustainable Development Goals. He also noted that corruption, a pervasive issue affecting all of humanity, has far-reaching negative impacts on national advancement, stability, and prosperity.

The African Union has designated July 11 as a day to raise awareness about the dangers of corruption, in line with the United Nations’ efforts to reduce corruption and promote transparency. Akutah stressed the importance of engaging young people in discussions on national, continental, and global issues, highlighting their role as integral members of society.

He further explained that the theme of the debate competition underscored the importance of whistleblowers and the need for their protection. “Recognizing whistleblowing as a critical element for combatting corruption, there are institutions, laws, and policies put in place at the national, regional, and global levels to protect the whistleblower,” he added.

The NSC has implemented a policy to protect whistleblowers, as outlined in the NSC Code of Conduct. Additionally, the NSC Anti-Corruption and Transparency Unit is tasked with safeguarding whistleblowers within the council. Akutah noted that whistleblower efforts in the country have led to the recovery of billions of naira, which have been invested in critical infrastructure development.

In related news, the NSC has commended terminal operators for their investment in automation and vowed to complete vehicle transit areas, further emphasizing the council’s commitment to enhancing the country’s shipping and logistics sector.