Mr. Olanipekun Olukoyede, the Executive Chairman of the Economic and Financial Crimes Commission (EFCC), has called for the use of blockchain technology and artificial intelligence to track and recover $88.6 billion stolen from African countries annually through illicit financial flows (IFFs).
Olukoyede emphasized the urgent need for advanced strategies during his keynote address at the Pan-African Conference on Illicit Financial Flows and Taxation.
The EFCC’s boss pointed out that Africa loses $88.6 billion yearly to IFFs, funds that could otherwise be invested in critical infrastructure, healthcare, and education.
He cited successful recoveries, such as the $311 million linked to Nigeria’s former Head of State, Sani Abacha, repatriated from the United States in 2020, as examples of effective international cooperation.
‘’The issue of illicit financial flows has been a long-standing challenge for African countries. The notorious Abacha loot, for instance, has seen multiple recoveries over the years.
“Illicit financial flows pose a grave challenge to Africa’s economic stability and development,” Olukoyede stated.
“Over $88.6 billion is illicitly siphoned from the continent annually, funds that could otherwise be channeled towards critical infrastructure, healthcare, and education.”
On November 3, 2023, President Bola Tinubu expressed gratitude to France for returning $150 million stolen by the former Nigerian Head of State.
Olukoyede stressed that IFFs severely undermine Africa’s economic stability and development, necessitating robust measures to tackle the issue.
He also stated the importance of international cooperation, citing the Stolen Asset Recovery Initiative (StAR), a partnership between the World Bank and the United Nations Office on Drugs and Crime (UNODC), as “pivotal” in facilitating these efforts.
Emphasizing the importance of international cooperation, Olukoyede highlighted initiatives like the Stolen Asset Recovery Initiative (StAR), a partnership between the World Bank and the United Nations Office on Drugs and Crime (UNODC).
He noted that the recovery of $311 million from the Abacha loot, allocated to infrastructure projects like the Second Niger Bridge and the Lagos-Ibadan Expressway, was a testament to successful international cooperation.
Olukoyede, however,, called for establishing robust legal frameworks and capacity building to enhance coordination at national, regional, and international levels.
He advocated for the adoption of advanced technologies such as data analytics, blockchain, and artificial intelligence to improve asset tracking and recovery efforts.
He stressed the importance of strong advocacy, stating that fighting corruption would be ineffective without international pressure to ensure cooperation from tax havens and low-tax jurisdictions.
Olukoyede also incorporated insights from the recent high-level technical stakeholders meeting in Addis Ababa, held from May 28-30, 2024.
Organized by the African Union Advisory Board against Corruption (AUABC) and the African Union Commission – Political Affairs, Peace and Security Department (AUC-PAPS), in collaboration with the GIZ Global Program on Illicit Financial Flows (GP-IFF), the meeting focused on establishing the Pan-African Asset Recovery Practitioners Forum.
Addressing the challenges in asset recovery, Olukoyede highlighted the technical, legal, and political hurdles that complicate the process of tracing, freezing, and repatriating illicit funds.
He called for the strengthening of legal and institutional frameworks across African countries to better combat IFFs.
Olukoyede noted that “Strengthening legal and institutional frameworks across African countries is essential to better combat illicit financial flows.”
The Pan-African Conference on Illicit Financial Flows (PAC) is the premier annual forum of the African Union (AU). It brings together relevant actors across Africa to discuss issues related to illicit financial flows and taxation on the continent.
The conference serves as a platform for stakeholders to share insights, strategies, and best practices in addressing the challenge of IFFs.
The EFCC Chairman’s recommendations highlight the critical need for enhanced collaboration, technological adoption, and international pressure to effectively track and recover stolen assets.
By implementing these strategies, African countries can significantly reduce the economic drain caused by illicit financial flows and redirect these funds toward vital developmental projects.