The Chairman of Nigeria’s Independent Corrupt Practices and Other Related Offences Commission (ICPC), Dr. Musa Adamu Aliyu, has said that some Nigerian banks are complicit in illicit financial flows (IFFs) that drain Africa of billions of dollars annually.
Dr. Aliyu told guests at the 13th Realnews Magazine Anniversary Lecture in Lagos on Wednesday, that the financial sector, which is traditionally regarded as the pillar of economic stability, has become an active conduit for the illegal movement of funds that undermine national development.
Speaking on the theme of the anniversary lecture “Cybersecurity, Illicit Financial Flows and Achieving Agenda 2063 in Africa”, Dr. Aliyu revealed that the ongoing ICPC investigations show that “a few Nigerian banks have been complicit, turning a blind eye to transactions that clearly bear the hallmarks of illicit financial flows.”
According to Aliyu, these institutions enable multinational corporations and local entities to hide revenues, manipulate trade invoices and move illicit proceeds out of Nigeria under the guise of legitimate transactions.
He disclosed that one major international company currently under ICPC investigation for falsifying expenditure claims to suppress taxable profits.
“The amount involved at a mid-range estimate, is enough to rehabilitate about 10 teaching hospitals in Nigeria,” he said, underscoring the scale of economic harm.
He explained that several foreign trading and manufacturing firms, are under-declaring revenues through shadow accounts and unlicensed firms created solely to move illicit proceeds, which often with silent approval from insiders within the banking system.
Aliyu warned that as Africa becomes more digitally connected, the speed and complexity of these illicit flows increase, especially with the rise of cryptocurrency platforms and digital payment channels.
He stressed that cybersecurity is now central to economic stability. Cybercriminals, traffickers, corrupt officials and even terrorist networks increasingly rely on financial institutions to move funds at electronic speed.
“Banks, mobile money operators and digital platforms sit at the frontline,” he said. “If their systems are weak, our financial system is exposed.”
Business email compromise schemes, cryptocurrency-based laundering, mobile money fraud and ransomware attacks, he added, are growing threats that exploit institutional vulnerabilities.
On the impact on Agenda 2063, Aliyu stated bluntly that Africa cannot achieve the ambitious goals of the African Union’s Agenda 2063 while losing over $80 billion annually to illicit financial flows.
These losses, according to him, “are not mere numbers; they are schools unbuilt, hospitals unequipped, roads that never materialise, and futures stolen.”
Speaking on the response of the Commission, the ICPC boss highlighted steps the Commission is taking, including establishing a Cybercrime and Digital Forensics Unit, strengthening collaboration with financial regulators, and forming international partnerships for asset tracing.
He, however, stressed that law enforcement cannot win the battle alone and stated: “Compliance cannot be a box-ticking exercise. Financial institutions must be proactive partners in safeguarding Africa’s wealth.”
He urged banks to improve Know Your Customer (KYC) procedures, enhance transaction monitoring and cooperate fully with anti-corruption agencies.
Aliyu warned that without strong action from both the government and the private sector, illicit financial flows would continue to cripple the continent’s development aspirations.
“Every naira lost to illicit financial flows is a direct blow to the Africa we want,” he declared.
“If banks do not strengthen their systems, Africa’s digital future will remain vulnerable.”
GIK/APA