General News
Nigeria, Others ‘Lose $1 Trillion in Dirty Money’
Developing countries are losing nearly $1 trillion to crime and corruption, with the disappearance of dirty money hitting some of the world’s poorest regions hardest, a new report has found.
Sub-Saharan Africa suffered the biggest loss as a share of its economy, with the disappearance of dirty money averaging 5.5 percent of GDP.
Nigeria and South Africa were among the top 12 nations with the largest volumes of illicit outflows.
A record $991 billion in unrecorded funds left 151 developing and emerging economies in 2012, up nearly 5 percent from a year earlier, a US-based watchdog that exposes financial corruption said on Monday.
Global Financial Integrity (GFI) found that, between 2003 and 2012, the estimated amount of illicit funds shifted from developing countries totalled $6.6 trillion and rose at an inflation-adjusted 9.4 percent a year – roughly double global GDP growth.
This is a trillion dollars that could have contributed to inclusive economic growth, legitimate private-sector job creation, and sound public budgets
GFI President Raymond Baker said the estimated losses were conservative but were still more than 10 times the total amount of foreign aid these countries received. He called the growth rate “alarming”, having surged from about $297 billion in 2003.
“Illicit financial flows are the most damaging economic problem plaguing the world’s developing and emerging economies,” Baker said in a statement.
“It is simply impossible to achieve sustainable global development unless world leaders agree to address this issue head-on.”
China, Russia, Mexico, India, Malaysia saw the largest outflow of dirty money – the proceeds from shady business, crime and corruption – over the decade and also in 2012.
Sub-Saharan Africa suffered the biggest loss as a share of its economy, with the disappearance of dirty money averaging 5.5 percent of GDP. Nigeria and South Africa were among the top 12 nations with the largest volumes of illicit outflows.
Asia was the region of the developing world with the greatest flow of dirty money over the decade, accounting for 40.3 percent of the world total, driven by China.
But the researchers found growth of illicit flows was faster in other parts of the world, particularly in the Middle East and North Africa and in sub-Saharan Africa, where the growth was seen at 24.2 percent and 13.2 percent respectively.
Why does the international banking system make it so easy for corruption to flourish?
The GFI research found fraudulent mis-invoicing of trade transactions was the most popular method to move money illegally and accounted for nearly 78 percent of illicit flows in 2012.
Money is moved overseas through trade mispricing by fraudulent underbilling or over-invoicing for goods to avoid tax or to hide large transfers.
One of the report’s authors, GFI’s Joseph Spanjers, said the trillion dollars lost from these economies in 2012 could have been invested in local businesses, healthcare, education or infrastructure.
“This is a trillion dollars that could have contributed to inclusive economic growth, legitimate private-sector job creation, and sound public budgets,” he said.
GFI called for the UN to next year include a target to halve all trade-related illicit flows by 2030 as it negotiates a new set of global goals, the Sustainable Development Goals, to replace the Millennium Development Goals.
Federal government has temporarily suspended the controversial annual dues imposed on public interest enterprises by the Financial Reporting Council (FRC) after fierce opposition from businesses.
Jumoke Oduwole, minister, Industry, Trade, and Investment, announced the decision during a Ministerial Consultative Meeting in Abuja on Wednesday.
The move follows mounting pressure from private sector groups, including the Nigeria Employers’ Consultative Association (NECA) and the Manufacturers Association of Nigeria (MAN), who slammed the Financial Reporting Council (Amendment) Act 2023 for burdening companies with excessive fees.
The Act mandates cumulative annual charges for non-listed entities and imposes a harsh 10% monthly penalty on unpaid dues, compounding until full payment, a provision that sparked widespread backlash.
At the meeting, major industry players like NECA, MAN, the Nigerian Association of Chambers of Commerce (NACCIMA), oil producers, and telecom operators warned that the fees would cripple businesses already struggling in a tough economy.
Oduwole clarified the suspension, stating, “The government has decided to direct the Financial Reporting Council to pause in the implementation of the new annual dues. You know that I am a lawyer, and a suspension request by the organised private sector would be in contravention of legislation duly passed by the National Assembly. A pause is an administrative process simply to review, in line with what we discussed today.”
She assured stakeholders that the halt would last no longer than 60 days, with a technical working group—including FRC officials and private sector representatives—set up to reassess the policy.
“We are a listening administration. The private sector has requested a range from three months to an indefinite suspension. We are not going to do that. So, at the most, 60 days is in my estimate. We are going to set up a technical working group comprised of the FRC and the organised private sector who have formally written in, and this will be reviewed,” Oduwole emphasized.
The Standards Organisation of Nigeria (SON) says it is intensifying efforts to standardise locally manufactured products, including Made-in-Aba brands, in order to enhance both local and international acceptance.
Aharanwa Chuks, Director of Region (South East), SON, communicated this in an interview with the News Agency of Nigeria (NAN) on Wednesday in Abuja.
Chuks said through the Mandatory Conformity Assessment Programme (MANCAP), SON ensured that all Nigerian-made products conformed to the relevant Nigerian Industrial Standards (NIS).
According to him, MANCAP involves direct engagement with manufacturers to certify that their products meet established quality benchmarks.
“This process includes inspecting production facilities, sampling products and testing them against NIS requirements.
“Successful compliance results in the issuance of the MANCAP certification, signifying adherence to quality standards.
“In Aba, SON has been proactive in educating manufacturers about standardization.’’
The director said SON also conducted stakeholder interactions; gathering manufacturers from various sectors to provide guidance on producing goods that met both local and international standards.
“For instance, leather manufacturers in Aba have been sensitized on standardization practices to enhance the global competitiveness of their products.
“Manufacturers are encouraged to collaborate with SON to obtain MANCAP certification, ensuring their products are not only marketable within Nigeria but also competitive internationally.
“This initiative aims to boost consumer confidence and promote the acceptance of Made-in-Aba products globally,” Chuks said.
Operatives of the Economic and Financial Crimes Commission (EFCC), has busted a Ponzi Scheme Academy and arrested 133 suspects in Abuja.
They were arrested at the Compensation Layout in Gwagwalada area of the Federal Capital Territory, FCT, Abuja, following actionable intelligence on the existence of the Academy.
The Academy, named Q University (a.k.a Q-Net) is in the business of recruiting gullible young Nigerians who are trained to recruit more gullible citizens into the scheme with the promise of getting unrealistic profit returns.
The suspects are enrolled into a training codenamed: “Special Training for New Generation Billionaire” and brainwashed to believe that they would graduate into the league of billionaires.
They got into the training by obtaining a form the promoters called “Independent Representative Application Form” with promotional slogans such as: “I’m a Champion” “I’m Unstoppable”, “I’m Infinity”, among others.
The EFCC carried out the operation in collaboration with officers and men of 176 Guards Battalion, Nigerian Army.
Items recovered from the suspects include phones, computers and other electronic gadgets.
They will be charged to court as soon as investigations are concluded.
Court Throws Out Falana’s Fraud Case against Ekeh, Zinox Boss and Others
FG to Halt Solar Panel Imports, Pushes for Local Manufacturing
FG Halts Controversial FRC Dues amid Industry Outcry
Nokia Unwraps 5G Gateway for Home Internet
Senate Passes Bill to Re-enact NIMC Act
News3 days agoPolice Arrest 4 Bank Staff over Alleged ₦270m Fraud, Money Laundering
E-Financial3 days agoUBA Grows Profit to ₦804Bn, Declares N3 Kobo Final Dividend
E-Business3 days agoNIMC to Prosecute Nigerians Printing ‘NIN Cards’, Says Only Slip is Legal
- E-Business2 days ago
FG Plans to Link Social Register to NIN for Humanitarian Crisis
Telecom3 days agoOpen Access Fabrics Set to Drive Connectivity to Achieve a Digital Economy
E-Business3 days agoUnleashing Nigeria’s Business Potential: The Cloud as Catalyst for Growth
Telecom2 days agoKeystone Bank Seeks to Join Suit in Tussle over 9Mobile Shares Ownership
Telecom3 days agoMTN Nigeria and Pan-Atlantic University Invite Media Practitioners for 4th Media Innovation Programme