Connect with us


Group Tracks $30.4b Illicit Funds, Lifts Africa’s Economies



South Africa Economy
  • Group Tracks $30.4b Illicit Funds, Lifts Africa’s Economies

Money laundering has remained a major challenge to nations.

According to the group, about $30.4 billion is illegally transferred out of Africa yearly. To stem the menace, GIABA is empowering key institutions to tackle illicit financial flows within the region.

GIABA said the Financial Action Task Force (FATF) requires countries to identify, asses and understand the Money Laundering/Terrorist Financing (ML/TF) risks to which they are exposed, take measures and mobilise resources to ensure that such risks are mitigated.

The group had, during its plenary’s preliminary meetings in Somone, the Republic of Senegal, ensured that follow-up reports on the Mutual Evaluation (ME) of Sao Tome & Principe, Benin, Nigeria, Sierra Leone, Togo, The Union of the Comoros and Guinea-Bissau were considered by the Evaluation and Compliance Group (ECG). The ECG will also consider the first follow-up report to the second round of mutual evaluation of Ghana.

The Financial Action Task Force-style regional Body (FSRB), GIABA meets twice yearly with its officials and experts to analyse, monitor and identify strategies for effective implementation of AML/CFT measures in member-states.

The mutual evaluation is designed to assess the implementation and effectiveness of the laws, regulations or other measures required by the core criteria, to ascertain whether the requisite measures have been comprehensively implemented and whether the AML/CFT regime is effective. The mutual evaluation process also provides information on the progress made by every member state in meeting its obligations towards the FATF recommendations.

According to GIABA, once the Mutual Evaluation Report (MER) of a country has been adopted, the Secretariat monitors progress being made, taking into account the deficiencies in the country’s AML/CFT regime.

It said the follow-up starts with the assessed country being required to present a report to the GIABA Plenary yearly after the adoption of its MER. While outlining the progress made, the country strives to address the deficiencies in its AML/CFT regime, emphasising the FATF core and key recommendations. Countries that fail to make any significant progress are placed on the enhanced follow-up process and, therefore, required to submit FURs to Plenary every six months. Furthermore, based on the principle of reciprocity, GIABA shares its MERs and FURs with FATF, observer members from, the World Bank, International Monetary Fund (IMF) and other FSRBs. This sharing guarantees the exchange of experiences, objectivity and transparency of the process.

The battle continues

The sorry state of public institutions within the ECOWAS region is disturbing. For instance, in many public schools, pupils learn sitting on the floors, the hospitals lack basic drugs, while the road networks are death traps.

These ills thrive in societies where corruption and illicit financial flows are rampant. GIABA Programmes and Projects Director said, Buno Nduka, said public institutions in the sub-region have suffered immensely from corruption in public and private sectors.

He spoke during a three-day regional workshop organised by GIABA on Investigative Reporting on Economic and Financial Crimes for Journalists from West African countries, in Saly, Senegal. He called on financial reporters to develop the right skills to help government and private sector operators fight corruption and tackle illicit financial flows.

He also expressed concerns over illicit financial flows (IFFs) from West African economies, and the need to tackle them by key stakeholders within the region.

Nduka urged financial reporters to investigate human trafficking, kidnapping, sexual exploitations, counterfeiting of currencies, extortion, and fraud in the banking sector across the ECOWAS. He said reports on such societal ills would enable law enforcement agents to catch the criminals.

He cited GIABA’s strategic plan, 2016 to 2020, which showed that the Global Financial Integrity (GFI), the World Bank, the African Development Bank (AfDB), the Africa Progress Panel and the African Union’s High Level Panel on Illicit Financial Flows from Africa (AU Panel) paint a grim profile of the problem.

A study by the GFI and the AfDB showed that between 2000 and 2009 that about $30.4 billion was illicitly transferred out of Africa yearly.

Over a longer period of 30 years, from 1980, the resource drain was between $1.2 and $1.3 trillion.

Outflows from West and Central Africa stood at (37 per cent), followed by North Africa (31 per cent) and Southern Africa (27 per cent). The IFFs are derived from various predicate offences of money laundering.

According to GIABA Information Manager, Timothy Melaye, GIABA remained a specialised institution of the ECOWAS as well as Financial Action Task Force –Styled Regional Body (FSRB) responsible for combating the scourge of Money Laundering and Terrorist Financing in West Africa.

“GIABA is a change agent. We build capacity, collaborate and sanction countries when they refuse to comply with the Financial Action Task Force (FATF) 40 recommendations. We also promote the economies of member ECOWAS states,” he said.

He however, said that GIABA Cannot implement sanctions against money launderers but can make public statements against countries with significant deficiencies in implementing the FATF recommendations.

He said, such public statement against a blacklisted country, can dry up foreign investments into affected countries, and spread the message that such country is not safe for business.

Dangers of terrorist financing

GIABA’s Strategic Plan, 2016 to 2020, said some of the funds that support the violent extremism being experienced in some parts of the region either originate from West Africa or traverse it.

It said the escalation of terrorist acts being committed by Boko Haram, Ansar Dine, Al Qaeda in the Maghreb (AQIM) and the Movement for Oneness and Jihad in West Africa (MUJAO), has attracted regional and global concern.

In September 2015, Amnesty International reported that from January 2015, Boko Haram had killed more than 3,500 civilians across four countries (Nigeria, Cameroun, Chad and Niger). “The resilience of the terrorist networks suggests that they have been innovative in sustaining themselves, using various methods and techniques to raise, move and utilize funds in order to carry out terrorist activities. Smuggling of goods has been found to be central to the financing of terrorist activities,” it said.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq,, Investorplace, and many more. He has over two decades of experience in global financial markets.

Continue Reading


Inflation and Forex Mismanagement Drive Petrol Truck Prices from N7M to N25M



Petrol Importation -

The Chairman of the Independent Petroleum Marketers Association of Nigeria in the Satellite Depot branch, Akin Akinrinade, has raised an alarm over the rising cost of petrol trucks in Nigeria.

According to Akinrinade, the cost of a petrol truck has surged from N7 million in May to an astonishing N25 million at present, attributed to inflation induced by poorly managed foreign exchange rates.

Akinrinade pointed out that the forex mismanagement has significantly impacted the landing cost of premium motor spirit (PMS), commonly known as petrol, consequently leading to a surge in pump prices.

The unstable business environment, coupled with the astronomical rise in expenses, has created challenges for marketers in the downstream oil sector.

Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), highlighted in October 2023 that foreign exchange challenges have hindered private companies from importing petroleum products.

As a result, the NNPCL has become the exclusive importer of petrol.

The decision to limit private entities from importing fuel comes after President Bola Tinubu’s initiatives aimed at deregulating the fuel market.

Initially, the plan was to allow private companies to import fuel starting June 2023, aligning with efforts to balance the market after removing petrol subsidies.

The ripple effects of the soaring petrol costs are already evident, with commercial transporters increasing fares, and private car owners seeking fuel-saving alternatives.

As Christmas approaches, the surge in demand for interstate travel is expected to further elevate costs, posing financial challenges for many Nigerians amidst stagnant income levels.

Continue Reading


Nigeria’s Presidential CNG Initiative Allocates N100bn for CNG Buses and EV Adoption




The Presidential Compressed Natural Gas (CNG) Initiative has allocated N100 billion to expedite the deployment of CNG buses nationwide, according to a statement released on Wednesday.

The initiative, designed to catalyze an Auto-gas and Electric Vehicle (EV) revolution in mass transit and transportation, aims to enhance sustainability and cost-effectiveness.

The statement revealed that the fund would be instrumental in supporting the adoption of auto-gas and electric vehicles, signaling a commitment to a more sustainable and economical future in the transportation sector.

The Presidential CNG Initiative plans to leverage over 11,500 CNG and electric-fueled vehicles, along with the deployment of 55,000 conversion kits.

This strategic approach is intended to reduce transportation costs for Nigerians and mitigate the challenges posed by the rising cost of living.

Under the Renewed Hope Agenda, the Presidential CNG Initiative is dedicated to realizing the President’s vision, guided by its steering committee led by FIRS Chairman Zacch Adedeji.

The statement highlighted recent achievements, including strategic technical partnerships and the ongoing commissioning of CNG Conversion centers in key states such as Lagos, Abuja, Kaduna, Ogun, and Rivers.

Several more centers are slated for commissioning in the coming weeks, reflecting the initiative’s momentum and commitment to achieving its objectives.

Continue Reading


Nigeria’s Power Transformation: 53 Projects Worth N122bn on Track for May 2024 Completion



power project

The Central Bank of Nigeria (CBN), in collaboration with the Transmission Company of Nigeria (TCN) and power distribution companies, is set to complete 53 power projects by May next year.

Valued at N122 billion, these projects aim to add over 1,000 megawatts to TCN’s wheeling capacity.

During a recent tour of three ongoing projects in Lagos, TCN’s Programme Coordinator, Mathew Ajibade, assured that the projects were not abandoned, refuting speculations.

He confirmed that work is progressing smoothly and is expected to be completed by May 2024, as initially planned.

Assistant Director/Head of Infrastructure Finance Office at the CBN, Tumba Tijani, highlighted the CBN’s support for the power sector, revealing that the bank released a loan at a 9% interest rate in August last year for the projects.

The funding, part of the Nigeria Electricity Market Stabilisation Facility-3, amounts to N122,289,344 and aims to address transmission/distribution bottlenecks, enhance supply to end-users, and unlock unutilized generation capacity.

Tijani disclosed that N85.43 billion has been disbursed into the Advance Payment Guarantee account of the 53 contractors responsible for executing the projects.

The comprehensive project list includes the delivery of power transformers, re-conductoring existing transmission lines, upgrading existing substations, and constructing 33KV line bays.

The initiative reflects a concerted effort to enhance Nigeria’s power infrastructure and meet growing energy demands.

Continue Reading