Africa loses over $50 Billion annually to Illicit financial flows, Nigeria, Egypt, top list –NMGS Experts
By: Goodluck E. Adubazi, Abuja.
The major challenges of financial sustainability in Africa have been traced to Illicit financial flows from its continent.
This expert stated exacerbated the poverty and hunger levels in Africa.
At the 60th Annual International Conference and Exhibition of the Nigerian Mining and Geosciences Society – NMGS, which began on Monday, the 17th of February, 2025, in Abuja, experts raised concerns about the “Out of Africa” and Illicit financial flows.
Standard-Times reports from the ongoing International conferences that brought many experts from the continent of Africa that a recent report has shed light on the alarming scale of illicit financial flows (IFFs) from Africa, with Nigeria and Egypt being among the top countries affected.
The report according to one of the Session Presenter and penalist Ms. Nikoh Mefeugeng Christelle, Senior Accountant Rural Development Ministry of Water Resources and Energy, Yaounde Cameroon, which analyzed data from 1970 to 2008, reveals that Africa lost a staggering $50 billion annually to IFFs, resulting in a net loss of $58 billion per year.
Illicit financial flows refer to the illegal movement of money out of a country, often through corrupt practices, tax evasion, or other criminal activities.
This phenomenon has severe consequences for African economies, as it deprives them of much-needed resources for development, exacerbates poverty, and undermines governance.
According to the report, the top 10 countries affected by IFFs in Africa are:
1. Nigeria: $12.2 billion annual loss
2. Egypt: $5.6 billion annual loss
3. South Africa: $4.8 billion annual loss
4. Morocco: $3.9 billion annual loss
5. Algeria: $3.5 billion annual loss
6. Angola: $3.4 billion annual loss
7. Sudan: $2.6 billion annual loss
8. Ethiopia: $2.4 billion annual loss
9. Democratic Republic of Congo: $2.2 billion annual loss
10. Kenya: $1.9 billion annual loss
The report highlights the need for African governments to strengthen their institutions, improve governance, and enhance transparency to combat IFFs. It also emphasizes the importance of international cooperation in tackling this global problem.
The African Union and the United Nations have launched initiatives to address IFFs, including the African Union’s High-Level Panel on Illicit Financial Flows and the United Nations Convention against Corruption.
Experts warn that if left unchecked, IFFs could continue to undermine Africa’s development prospects, perpetuating poverty and inequality.
