Illicit financial flows from Nigeria to so-called safe havens have continued to be a major drain pipe on the economy, leading to losses of billions of dollars. So it was encouraging to hear President Muhammadu Buhari call for stiffer penalties for defaulters at the recently concluded first Edition of the Paris Forum.
At that forum, Mr. President advocated the need to crackdown on safe havens for corrupt assets and to ensure that profits and assets generated from illicit acticity are recovered and returned to the countries of origin. In that respect, he said that the country has done a couple of things to checkmate illegal flows including strengthening the laws and institutions of the country, fast track recovery of stolen assets and the punishment of offenders.
He said, “We must crack down on safe havens for corrupt assets. I also advocate sanctions by professional bodies against transactional middlemen (lawyers, bankers, brokers, public officials, etc.) who facilitate illicit financial flows.
“I would like to reiterate that the government of Nigeria remains open and is ever willing to continue to identify and share experiences and strategies to give life to the ideas that will lead to winning the fight against corruption.”
But despite these measures corruption is still rife, which speaks volume of the ineffectiveness of the anti corruption stance of government. In fact in the perception of the generality of Nigerians, the anticorruption fight leaves much to be desired as there are still several cases yet to be prosecuted by the Economic and Financial Crimes Commission (EFCC), the body charged with prosecuting cases of corruption. There have been too many delays and cover ups. For instance, many will want to know what became of the Babachir Lawal case and why instead of a reprimand and arrest, governor Ganduje is getting a slap on the wrist.
Further undermining government position, according to the Socio-Economic Rights and Accountability Project (SERAP) are “the low conviction rate, the authorities’ slowness to adopt and implement critical reforms, appearance of selectivity in the anti-corruption fight, apparent complicity of key officials and cover-up, as well as unaddressed alleged corruption against several state governors.”
The situation in Nigeria is so bad that the country has over the years got worse in the Transparency International’s (TI) corruption index, ranking 148 out of 175 countries in the 2017 ranking. This is all the more reason why government needs to walk the talk. True, government has institutionalised the corruption fight through the EFCC but it appears the institution is a mere political tool of the ruling party, pandering to the whims and caprices of the presidency. It is not strange to see the EFCC haunt members of the opposition while giving protection to members of the ruling party. We want to remind government that only when the institution is independent and impartial that true results can be achieved.
Not dealing decisively with these illicit flows and every form of corruption affects the economy and ultimately impacts negatively on the peoples’ welfare as indicated by a recent PWC study. According to the consulting firm, corruption in Nigeria could cost up to 37 percent of GDP by 2030 if it’s not dealt with immediately. This cost is equated to around $1,000 per person in 2014 and nearly $2,000 per person by 2030. In 2012, Nigeria was estimated to have lost over $400 billion to corruption since independence.
Therefore,to stem the tide of illicit flows, government must make it increasingly difficult to launder funds and block every conceivable loopholes that make it possible. It needs to firm up cooperation with countries like Switzerland and the Cayman Islands where these funds are likely to find a home as they are round tripped and consequently laundered. Such countries should not only be made to return already stashed funds, but also to block such monies from getting into their countries. Where possible, these countries should alert the Nigerian authorities of the perpetrators.
It is also apposite for government to seek the cooperation of banks that handle huge transactions for their clients and in the process aid and abet criminal movement of monies abroad. Ordinarily, these transactions are executed discretely and remain confidential. But banks must be made to regularly update agencies of government about transactions above certain thresholds thus helping nip a possible illicit transaction in the bud. Finally, offenders must be visited with the full weight of the law irrespective of party affiliations.
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