Nigeria lost $83bn to illicit financial flows, says AfDB
Nigeria has the most IFFs of all African countries.Nigeria lost $83.3 billion to Illicit Financial Flows (IFFs) between 1960 and 2011 through trade misinvoicing, the African Development Bank (AfDB) has revealed.
AfDB's country director Ousmane Dore made this statement in Abuja this week at a stakeholders meeting on IFFs in Nigeria.
Nigeria is ranked seventh in the world and first in Africa among the countries plagued by IFFs.
Ousmane Dore said Nigeria has for many decades experienced a "very serious" problem with trade mis-invoicing, with fraudsters over-invoicing imports and under-invoicing exports to shift money out of the country, the Daily Trust reports.
"Exchange controls have been identified as a basic driver of trade misinvoicing in developing countries, especially Nigeria, because they tend to create black markets in foreign exchanges where foreign currencies can be bought and sold at a premium over official rates," he said.
He urged the Federal Government to sustain and strengthen domestic resource mobilisation and utilisation to drive a sustainable economic growth, and also to provide a more stable, reliable and less volatile way to finance development.