Africa Loses $50 Billion Daily to Illicit Financial Flows – ICPC Chairman

Chairman, Independent Corrupt Practices and Other Related Offences Commission, Dr Musa Aliyu, has said Africa loses over $50 billion annually to illicit financial flows, undermining development and crippling public services.

Mr Aliyu, disclosed this on Wednesday while speaking at the Realnews Magazine 13th Anniversary Lecture Series in Lagos with the theme: “Cybersecurity, Illicit Financial Flow and Agenda 2063 in Africa.”

The ICPC boss described the persistent outflow of illegal funds as one of the most devastating drains on Africa’s development capacity, noting that the lost resources could have been used to build schools, hospitals, roads, and other critical infrastructure.

He said illicit financial flows whether through tax evasion, corruption, illegal mining, wildlife trafficking, money laundering or cyber-enabled crimes had become a silent crisis that threatened African nations’ sovereignty and the future of their youth.

Mr Aliyu disclosed that investigations by the ICPC uncovered cases where multinationals manipulated trade figures and inflate costs to avoid paying taxes.

He cited a major firm found to had exaggerated expenses to reduce taxable profits, saying the amount lost would have been enough to construct a world-class hospital in Nigeria.

He stated, “These practices deny African governments the resources they need to function. Trade mispricing, profit shifting, and tax evasion remain some of the biggest contributors to financial leakages.’’

The ICPC boss also lamented the role of government officials who diverted public funds using multiple bank accounts, sometimes with the connivance of financial institutions.

He said suspicious transactions moving from government accounts into private hands were often ignored by banks that failed to file mandatory reports.

Mr Aliyu warned that Africa’s rapid digital adoption, with mobile-money usage over 50 per cent in several countries, had increased cybercrime risks, as criminals exploited weak cyber security systems.

He stated, “Cyber criminals are becoming more sophisticated. Ransomware attacks, cryptocurrency- based laundering, and mobile-money fraud are growing threats.’’

He added that criminal networks, often possessed more advanced technology and resources than enforcement agencies, making digital crimes harder to combat and track, especially once illicit funds left African jurisdictions.

Mr Aliyu also highlighted ongoing ICPC investigations uncovering ghost worker schemes, where corrupt officials manipulated payroll systems to divert salaries.

The chairman urged Nigeria’s National Assembly to pass the long-delayed Whistleblower Protection Bill, saying citizens will not come forward with critical information about corruption if they are not protected.

He also called for harmonised cyber laws across Africa, stronger asset recovery mechanisms, more robust digital infrastructure, training for law enforcement, and full implementation of the Malabo Convention on cyber security and Data Protection.

Mr Aliyu emphasised the need for African countries to speak with one voice in demanding the return of stolen assets and looted cultural artifacts held abroad.

The chairman said that unless the continent strengthened financial oversight, improved cyber security, and tackled corruption with collective resolve, illicit financial flows would continue to undermine growth and derail Africa’s Agenda 2063 aspirations.

He said, “We must secure our financial systems and protect our digital space. Only then can Africa realise its full potential.’’

The chairman of the occasion, and former Chief Judge of Lagos State, Justice Ayotunde Philips, urged African governments and the private sector to take urgent action on the continent’s development agenda and cyber security challenges.

Ms Philips, who was also a former chairman of Lagos State Independent Electoral Commission, stressed that Africa must seriously follow through on its strategic plans to achieve the Sustainable Development Goals.

“We should not joke with this, progress requires commitment from both government and private actors,” she said.

Ms Philips highlighted the growing threats in financial transactions and cyber security across the continent.

She noted that the transfer of funds out of Africa remained a critical issue that must be addressed and urged leaders to implement actionable measures to protect the continent’s digital and economic resources.

Ms Philips said that Africa has the capacity to stand strong but success depended on dedication and consistent follow-through on planned agendas.

In her welcome speech, the publisher/Editor of Realnews Magazine, Maureen Chigbo, said the 2025 lecture focused on illicit financial flows and the role of cyber security in the movement of illegal funds across borders.

Ms Chigbo highlighted the recent $52 million recovered through Nigeria-U.S. cooperation, originally looted by a former petroleum minister, now redirected to developmental projects.

She praised the speaker and panellists from the cybersecurity and fintech sectors for shedding light on the links between cybercrime, terrorism financing, and Africa’s stolen wealth.

The publisher acknowledged members of the Realnews Hall of Fame, celebrating their professional achievements and public service contributions.

Ms Chigbo appealed for support through advertisements, sponsorships, and collaborative initiatives.

She reaffirmed the organisation’s mission to provide investigative, development- focused journalism aimed at building a just, free, and prosperous Africa.

(NAN)