By Fatima Zahra
ASHENEWS reports that the Civil Society Legislative Advocacy Centre (CISLAC) has recommended that legislators focus on addressing corruption in government in a bid to address illicit financial flows in the country.
This is contained in a communique issued at the end of the inauguration of the APNIFFT Nigerian national caucus held in Abuja on Wednesday.
According to CISLAC, corruption as a contributing source to IFFs must be treated with great seriousness having observed that Africa bears the highest burden of illicit financial flows despite having the poorest populations.
“Nigeria being one of Africa’s largest economies is particularly affected by IFFs due to its size and economic importance. Factors contributing to IFFs in Nigeria include corruption and weak regulatory frameworks among other contributory factors.
“While national efforts by anti-graft agencies in Nigeria are making efforts to curb illicit financial flows in the country, it is important to galvanize wider stakeholders involvement to effectively arrest the menace of IFFs.
“Though it is noted to contribute 5% of IFFs in Africa, corruption is noted to be a facilitator for the other channels of corruption.
“Parliament can greatly contribute to the reduction of IFFs by ensuring anti-graft agencies are tracking and punishing perpetrators of IFFs through oversight functions.”
CISLAC urged the newly inaugurated members to take up the challenge to minimize the burden on Nigerians through legislative interventions.
“The injustice of multiple taxation must be comprehensively addressed. APNIFFT Nigeria must champion the process to reduce the burden of multiple taxes on small businesses while multinational companies enjoy tax exemptions.
“The legislators must take ownership of the fight against illicit financial flows and practices of tax injustice to discourage tax evasion from businesses,” the communique said.
According to the communique, Nigeria is reportedly ranked as one of the 10 largest countries for illicit financial flows in the world.
“Nigeria loses about $15 to $18 billion annually due to illicit financial flows (IFF) which are largely generated by tax evasion but fuelled also by grand corruption, organized crime activities, and many other licit and illicit.
“While the multi-nationals, especially of foreign decent, are being gifted several forms of incentives and waivers, local industries are bedeviled with multiple taxes. This has been a predisposing factor for entities to evade taxes.
“Institutional friction and low energy exist between agencies combatting IFFs in Nigeria. This has a negative impact on the country’s fight against IFFs.”
This online platform reports that the inauguration of the Nigerian caucus makes Nigeria the 45th Chapter of APNIFFT in Africa.
