July 10, 2024
By Anjali Kochhar
The Executive Chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Olanipekun Olukoyede, has advocated for the use of blockchain technology and artificial intelligence (AI) to track and recover the $88.6 billion stolen from African countries annually through illicit financial flows (IFFs). Speaking at the Pan-African Conference on Illicit Financial Flows and Taxation, Olukoyede highlighted the substantial economic loss and underscored the need for advanced strategies to combat this issue.
Olukoyede emphasized that Africa loses $88.6 billion each year to IFFs, funds that could otherwise be invested in critical infrastructure, healthcare, and education. He pointed to 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 evidence of effective international cooperation.
“Illlicit 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.”
Recently, 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 highlighted 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.
Olukoyede outlined several key strategies to address IFFs:
1. Collaboration: Emphasizing the importance of international cooperation, Olukoyede highlighted initiatives like the StAR, which have been crucial in recovering stolen assets. 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.
2. Stricter Legal Frameworks: Olukoyede called for the establishment of 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 AI to improve asset tracking and recovery efforts.
3. International Pressure: Stressing the importance of strong advocacy, Olukoyede stated that fighting corruption would be ineffective without international pressure to ensure cooperation from tax havens and low-tax jurisdictions. He incorporated insights from the recent high-level technical stakeholders meeting in Addis Ababa, held from May 28-30, 2024, focusing 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.
“Technical, legal, and political hurdles complicate the process of tracing, freezing, and repatriating illicit funds,” Olukoyede noted. “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), the premier annual forum of the African Union (AU), 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 IFFs and redirect these funds towards vital developmental projects.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
