By Aduragbemi Omiyale
Not less than $10 billion is lost by Nigeria annually to Illicit Financial Flows (IFFs), the Chairman of the Independent Corrupt Practices and Other Related Offences Commission (ICPC), Prof. Bolaji Owasanoye, has disclosed.
Speaking recently at a review of the report on IFFs in relation to tax, Mr Owasanoye revealed that this loss represents 20 per cent of the estimated $50 billion Africa loses to IFFs.
“The African Union Illicit Financial Flow Report estimated that Africa is losing nearly $50 billion through profit shifting by multinational corporations and about 20 per cent of this figure is from Nigeria alone,” the ICPC Chairman said.
He said to tackle this menace, the government can effectively use the instrumentality of taxation through “risk-based approach to monitoring and audit; due process in tax collection; structured tax amnesty framework especially that which is skewed in the public interest; data privacy; timely resolution of audits and payment of tax refunds; and intelligence sharing among revenue-generating; regulatory; and law enforcement agencies.”
He also disclosed that for the contemporary tax man to remain relevant, he must build his capacity in areas of technology management, solution architects and an astute relationship manager.
He, therefore, pointed out that the objective of the meeting was to improve the awareness of IFFs, especially in the areas of taxation, describing taxes as a “very strategic role in the nation’s political economy.”
In his contribution, the Executive Chairman of Federal Inland Revenue Service (FIRS), Mr Muhammad Nami, expressed concerns that IFFs pose a serious threat to the Nigerian economy as the act robs the nation of resources that are needed for development.
He declared that tackling IFFs would expand the country’s tax base of the Nigerian nation and improve revenue generation which was required for the development.
Mr Nami consequently pushed for policy reforms that would make it difficult for “capital flights” from occurring so that the country would be placed on the path of growth.
Other discussants at the event, who spoke with one accord, identified weak regulatory framework, the opacity of financial system and lack of capacity amongst others as some of the factors that fuel IFFs.
The discussants again unanimous emphasized the need for capacity building of relevant stakeholders as one of the ways to stamp out illicit flows.
They, therefore, commended ICPC for leveraging its corruption prevention mandate to open a new vista in IFFs discourse in Nigeria.
