Foreign currencies affected by illicit financial inflows – President of the IoDCCG

The continued decline in economic growth, business opportunities and social development in Africa and Nigeria has been linked to illicit financial flows.

The Chairman, IoD Center for Corporate Governance, Alhaji Shuaibu Idrisobserved a stakeholder meeting in the presence of financial experts, Naija News understand.

While reiterating the need for all stakeholders to play a positive role in enhancing the continent’s financial growth, Idris observed that illicit financial flows contribute to terrorist activities and the insecurity of the Lake Chad region, stretching across Nigeria.

Idris stressed the importance of all stakeholders jointly addressing the issue affecting Africa to reduce the impact of flows on the economy.

He said this during the IoDCCG Stakeholder Roundtable on “A Public-Private Sector Dialogue on Strengthening the Fight against Money Laundering and Terrorist Financing and Reducing Illicit Financial Flows in Nigeria and West Africa”, an initiative of the Center for International Private Enterprise, CIPE, USA and IoD Center for Corporate Governance in Lagos, Naija News understand.

The event took place physically and virtually, in the presence of different stakeholders who reflected on the subject.

He said, “Combating illicit financial flows is a matter of survival for Africa’s development. Not only does Africa lose around five percent of the continental gross domestic product each year to illicit capital flight, but the proliferation of illicit financial flows enables terrorist activity and insecurity in the Lake Chad region, which includes Nigeria covering the Sahel region.

“The losses in terms of economic growth, business opportunities and social development are therefore not quantifiable. This is a drain on Africa’s foreign exchange reserves, reduces efforts to improve domestic resource mobilization, constrains investment flows and contributes to low social development indicators, including poverty and inequality.

He said the IoDCCG was a collaborative project of the Institute of Directors Nigeria, the Securities and Exchange Commission and the Corporate Affairs Commission.