Alhaji Shuaibu Idris, Chairman of the IoD Centre For Corporate Governance (IoDCCG), has stated that illicit money inflows into Africa and Nigeria are exacerbating foreign exchange problems and generating economic losses.
Idris stated that it was critical for all stakeholders to work together to address the issue and decrease the economic impact of the influx.
He made the remarks at the IoDCCG stakeholder roundtable in Lagos on ‘A public/private sector dialogue on strengthening anti-money laundering/counter-terrorist financing and curbing illicit financial flows in Nigeria and West Africa,’ which was organized by the Center for International Private Enterprise, CIPE, USA, and the Institute of Directors Centre for Corporate Governance.
Different stakeholders attended the event, which was hosted both physically and electronically, and brainstormed about the topic.
He said, “Tackling illicit financial flows is a matter of survival for Africa’s development. Africa not only loses about five per cent of continental Gross Domestic Product annually to illicit capital flights but the proliferation of illicit financial flows enables terrorist activity and insecurity from the Lake Chad region, which includes Nigeria spanning the Sahel region.”
“The losses to economic growth, trade opportunities, and social development is therefore unquantifiable. This constitutes a drain on Africa’s foreign exchange reserves, reduce efforts to enhance domestic resource mobilisation, contract investment inflows and contribute to low social development indicators, including poverty and inequality.”
The Institute of Directors Nigeria, the Securities and Exchange Commission, and the Corporate Affairs Commission collaborated on the IoDCCG, he said.