Nigeria is bearing a heavy financial burden from illicit financial flows (IFFs), losing nearly $17.7 billion each year—representing around 20% of Africa’s total losses in this category, according to the Federal Ministry of Finance. This alarming figure was presented at a recent session at the United Nations Headquarters in New York, as part of preparatory talks ahead of the Fourth International Conference on Financing for Development (FfD4) set to hold in Seville.
Speaking to global finance leaders, Minister of State for Finance, Doris Uzoka-Anite, said the massive capital flight is crippling Nigeria’s developmental prospects, denying millions access to quality infrastructure, healthcare, and education.
“These illegal outflows are stalling our development and stealing opportunities from our people,” Uzoka-Anite said during the session on sustainable development financing. “We need collective global action to ensure these resources serve their intended purpose.”
Understanding the Cost of Illicit Financial Flows
Illicit financial flows encompass a wide range of illegal cross-border financial activities such as tax evasion, corruption, trade misinvoicing, and unrecorded capital transfers. While this is a challenge for many African nations, Nigeria’s share of the continent’s estimated $88.6 billion annual losses stands out.
Experts have pointed out that the funds lost through these illegal channels could drastically transform Nigeria’s public sector, especially in terms of infrastructure, schools, and medical services.
Nigeria Leads Asset Recovery and Global Reform Push
In response to the crisis, Nigeria is championing several regional and international initiatives aimed at curbing the menace. Uzoka-Anite highlighted the country’s active role in promoting the Common African Position on Asset Recovery (CAPAR), which seeks to streamline the return of stolen assets from foreign jurisdictions back to African nations.
Nigeria is also lobbying for stronger international cooperation on tax matters through the United Nations’ framework on international tax collaboration.
According to Uzoka-Anite, “There’s a need for fairness in the global financial system. If we are serious about development, we must create mechanisms that keep our funds where they are needed most—at home.”
Call for Global Financial Transparency
The minister emphasized the need for stricter regulations around the disclosure of beneficial ownership, improved data sharing between countries, and dismantling of secretive global structures that enable IFFs.
She argued that these reforms are not just technical necessities—they’re moral obligations.
“As developing nations, we cannot continue to operate in a system that allows our wealth to vanish into opaque networks,” she said. “It is time for bold, collective reforms that serve the common good.”
A Wake-Up Call for the Global Community
Uzoka-Anite’s remarks add to growing calls for richer nations and global financial institutions to support transparency reforms and accelerate the return of stolen assets. Past recovery efforts have been slow, mired in legal red tape and diplomatic complications.
“Collaboration is the key,” she concluded. “We must protect the future by ensuring our resources serve the people—not criminal networks.”
