Illicit funds draining Nigeria’s revenue, forex reserves, says ICPC chairman – The Sun Nigeria

•Every kobo of Nigeria’s revenue’ll count –Presidency

From Adanna Nnamani, Abuja

Chairman, Independent Corrupt Practices and Other Related Offences Commission (ICPC), Prof. Bolaji Owasanoye, has raised the alarm that illicit financial flows were draining tNigeria’s foreign reserves and revenue.

Speaking at a one-day sensitisation workshop on the published “Guidelines for Private Sector Response to Illicit Financial Flow (IFF) Vulnerabilities in Nigeria” in Abuja, he explained that IFFs have detrimental effect on the country’s economy  because they cause currency rates to depreciate, which fuels inflation and raises the cost of repaying foreign debts.

The ICPC boss said the business sector contribute 70 per cent of the IFFS route while other sectors are responsible for 30 per cent. In order to stop the impact of IFFs on the Nigerian economy, he emphasised the necessity for the private sector to participate in curbing it.

“To the extent that IFFs is a drain on Nigeria’s potential revenue accretion, it is also a drain on her forex reserves, as it contributes to exchange rate depreciation, which feeds inflation and increases the cost of servicing external debts. More importantly, it negatively impacts the cost of imported goods like petroleum with its attendant radical consequences on the daily livelihood experience of ordinary citizens. To get out of this trap, diverse measures are required to tackle IFFs in all their forms and to improve Nigeria’s quest for domestic revenue to increase relative to the size of her economy and despite the volatile global economic and financial system,” he said.

Special Adviser to President Bola Tinubu on Revenue, Zacch Adedeji, said government would ensure every kobo of the country’s income is accounted for. He said Tinubu believes in fiscal restraint and would make wise use of the nation’s resources and promised that effort to combat IFFs are strengthened by the administration.

Adedeji said  IFFs had seriously undermined domestic revenue and complicated government efforts to raise funds, endangering economic stability and sustainable development.

“The president believes in fiscal discipline which rests on the accurate prediction of revenue. If the government can’t count your money, the government can’t allocate it and if the government can’t allocate it, it can’t manage it. The administration of President Bola Ahmed Tinubu will make every kobo of our revenue count.

“In Nigeria and across the African continent, we continue to suffer various forms of IFFs, including tax evasion and other harmful tax practices, illegal export of foreign exchange, abusive transfer pricing, trade mis-pricing, mis-invoicing of services, illegal exploitation and under-invoicing of natural resources, organized crimes, and corruption.”

He emphasised that stemming illicit financial flows would address its negative impact on global development agenda as well as governance challenge.

Adedeji commended Owasanoye for successes so far recorded by the anti-corruption agency in the fight against IFFs.