Nigeria: EFCC Chairman Advocates Blockchain and AI for Recovering $88.6 Billion Stolen from Africa

The Executive Chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Olanipekun Olukoyede, has urged the adoption of blockchain technology and artificial intelligence (AI) to track and recover the $88.6 billion lost annually to illicit financial flows (IFFs) from African countries.

Speaking at the Pan-African Conference on Illicit Financial Flows and Taxation, Olukoyede underscored the severe economic impact of IFFs and the pressing need for advanced strategies to combat this issue.

Impact of Illicit Financial Flows on Africa

Olukoyede highlighted that Africa loses $88.6 billion each year due to IFFs, funds that could otherwise be directed towards vital infrastructure, healthcare, and education. He pointed to successful recoveries, such as the repatriation of $311 million linked to Nigeria’s former Head of State, Sani Abacha, 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.”

He also referenced a recent event on November 3, 2023, where President Bola Tinubu thanked France for returning $150 million stolen by a former Nigerian Head of State.

Strategies to Combat Illicit Financial Flows

Olukoyede proposed several key strategies to address IFFs:

1. International Collaboration: Emphasizing the importance of global 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). These collaborations have been crucial in recovering stolen assets. 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.
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 need for strong advocacy, Olukoyede stated that fighting corruption would be ineffective without international pressure to ensure cooperation from tax havens and low-tax jurisdictions.

Olukoyede incorporated insights from a 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.

“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.”

Pan-African Conference on 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 IFFs 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.

In conclusion, 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 towards vital developmental projects.