The federal government has vowed to fight against all forms of illicit financial flows to prevent further draining of the country’s foreign reserves and revenue.
This was stated by the Special Adviser to the President Bola Ahmed Tinubu on Revenue, Mr Zacch Adedeji.
Illicit Financial Flows (IFF), according to the International Monetary Fund (IMF), refer to the movement of money across borders that is illegal in its source (e.g. corruption, smuggling), its transfer (e.g. tax evasion), or its use (e.g. terrorist financing).
Speaking on Thursday at a one-day hybrid sensitisation workshop on the published “Guidelines for Private Sector Response to Illicit Financial Flow (IFF) Vulnerabilities in Nigeria” organised by the Independent Corrupt Practices and other related Offences Commission (ICPC) in Abuja, Adedeji said that the government would strengthen the country’s fight against illicit financial flows.
He noted with concern that IFFs had significantly eroded domestic revenues and hampered government’s efforts to mobilise resources.
This, he said was threatening the economic stability and sustainable development of the country.
“In Nigeria and across the African continent, we continue to suffer various forms of IFFs, including tax evasion and other harmful tax practices including the illegal export of foreign exchange and abusive transfer pricing.
“Others are trade mis-pricing, mis-invoicing of services, illegal exploitation and under-invoicing of natural resources, organised crimes, and corruption,” he added.
He emphasised that stemming illicit financial flows would address its negative impact on global development agenda as well as governance challenge.