Corruption Drains 3.7% of Africa’s GDP Annually Says ECOWAS Commissioner

The Economic Community of West African States (ECOWAS) has raised alarm over the growing impact of corruption and illicit financial flows on Africa’s economy.

According to ECOWAS, Africa as a continent is losing an estimated $88.6 billion annually due to financial crimes.

Ambassador Abdel-Fatau Musah ECOWAS Commissioner for Political Affairs Peace and Security made the disclosure during a regional certification training on financial investigation for anti-corruption institutions in the ECOWAS region held in Niger State.

He was represented by Ebenezer Asiedu, Head of the Democracy and Good Governance Division.

Musah stated that the annual losses account for 3.7 percent of Africa’s Gross Domestic Product GDP warning that financial crimes have become a major threat to sustainable economic and social development in the region.

“As the financial industry experiences growth in West Africa the increasing adoption of cryptocurrencies and other emerging online financial systems have introduced new risks and vulnerabilities across member states” he said.

“This underscores the need for anti-corruption institutions to acquire specialised skills and knowledge to effectively combat these crimes.”

He noted that ECOWAS has remained committed to supporting democratic governance and the rule of law across West Africa in line with the Revised ECOWAS Treaty of 1993 and supporting protocols including the Protocol on Democracy and Good Governance 2001 and the Protocol on the Fight Against Corruption 2001.

Musah explained that corruption remains a serious impediment to institutional stability, investor confidence and socio-economic development across the region.

He called for enhanced collaboration between member states and a renewed commitment to building effective mechanisms to detect, prevent and prosecute financial crimes.

Meanwhile, in a related development, the Chairman of the Economic and Financial Crimes Commission EFCC, Ola Olukoyede has urged Commonwealth nations to adopt Nigeria’s proactive approach in tackling financial crimes.

Speaking at the opening of the Commonwealth Law Conference in Malta, Olukoyede stressed the importance of collaborative reform-driven strategies in disrupting transnational organized crime.

The EFCC Chairman, who spoke on the topic “Combating Financing of Terrorism and Proliferation Financing,” said Nigeria’s experience under the Financial Action Task Force FATF enhanced the monitoring framework.

He said the framework has not only improved compliance but has also helped build a resilient financial system capable of preventing terrorism financing.

Olukoyede called on Commonwealth nations to push for greater consideration for sub-Saharan African countries, many of which continue to dominate the FATF’s enhanced monitoring list.

He said members should advocate for balanced global policies that support least developed nations without compromising the international financial system’s integrity.

The ECOWAS Commission and EFCC have both reaffirmed the urgent need to strengthen institutional capacity, develop skilled investigators and implement coordinated regional strategies to combat corruption and illicit financial flows effectively.

As Africa’s financial systems continue to evolve, the growing sophistication of economic crimes presents new challenges that require innovative and unified responses across national and regional platforms.