A Washington-based research and advocacy organization, Global Financial Integrity (GFI), has ranked Nigeria seventh out of the top 20 developing countries whose currencies are moved abroad illegally.
In a report released by the organization whose main aim is to curb the cross-border flow of illegal money, it was learnt that about $19.66 billion illicit money was exported from Nigeria in 2010 alone while an average of $12.9 billion is moved yearly by corrupt politicians, businessmen, drug barons and criminals.
The report which was put together by GFI lead economist Dev Kar and GFI economist Sarah Freitas, states that, , from 2001 to 2010, China was top exporter of illicit currency with $2.74 trillion, followed by Mexico $476 billion, Malaysia $285 billion, Saudi Arabia $210 billion, Russia $152billion, Philippines $138 billion, and Nigeria $129 billion.
Other countries named among the top 12 included India with $123 billion, Indonesia $109 billion, United Arab Emirates $107 billion, Iraq $63.6 billion and South Africa $83.9 billion while Brunei takes the 20th spot with $37 billion.
According to the report titled “Illicit Financial Flows from Developing Countries: 2001-2010”, the developing world lost $859 billion in illicit outflows in 2010, an increase of 11 per cent over 2009. From 2001 to 2010, developing countries lost $5.86 trillion to illicit outflows.
To address the problem, the Global Financial Integrity report suggests that world leaders increase the transparency in the international financial system as a means to curtail the illicit flow of money.
Policies advocated include addressing the problems posed by anonymous shell companies, foundations and trusts by requiring confirmation of beneficial ownership in all banking and securities accounts.
It also demands that information on the true human owner of all corporations, trusts, and foundations be disclosed upon formation and be available to law enforcement; reforming customs and trade protocols to detect and curtail trade mispricing; and requiring the country-by-country reporting of sales, profits and taxes paid by multinational corporations.
While commending the report, president of the Progressive Shareholders Association, Mr. Boniface Okezie, said the money launderers will end up developing other peoples’ economy and creating jobs for the developed countries.
“The major problem is that they usually save our money outside and when they die the money will be lost and it will increase suffering in the country. Those who are laundering our money should help save it in Nigeria to enable the country create more jobs and that will help enhance the economy.”
However, Chief executive of Financial Derivatives Limited, Bismarck Rewane said he doubted the authenticity of the information.
He said “I don’t think so. Where did they get their information from? Let us not comment on matters that we don’t know the origin.
This is just another sensational headline. How much does Nigeria has that $129 billion would be missing, it’s a lot of money. If you want to make comments you have to know the facts. When you hear numbers like that you ask how true it can be, that $129 billion is missing. If that is true then you and I won’t be here, we’d probably be in Las Vegas.”
Also reacting to the report, leading economist, Henry Boyo, charged the group to specify how the money was laundered and the people or organizations or agencies that were responsible.
He said “I have no such information and if they have it, let them provide indications of how the money was taken out. If the research group is a credible organization it should indicate how it laundered out and who are the people and organizations agencies that are responsible and then it would be easier for people to believe that so much was stolen and so much was taken out. And we should not be carried away by all those.
“We know that there is plenty of corruption and waste in the system, but people should not make allegations without providing adequate evidence to support their allegations.”