Nigeria’s oil sector bleeds up to 92.9% of total illicit flows—NEITI
Fresh report by the Nigeria Extractive Industries Transparency Initiative (NEITI), has decried the jumping yearly losses to Illicit Financial Flows (IFFs) in Nigeria, saying about 92.9 per cent of the total bleeds away from the oil and gas sector.
Illicit financial flows are a form of illegal capital flight that occurs when money is illegally earned, transferred, or spent, especially as the monies disappear from any record in the country of origin, and earnings on the stock of illicit financial flows outside a country and do not return to the country of origin.
The report said not less than $18bn flies away from the industry yearly via government veiled officials, companies and persons operating therein.
NEITI report stressed that unless concerted efforts are made to block the haemorrhage, Federal Government will continue to find funding infrastructure an endless problem.
In an interview, Protem President, Chartered Institute of Forensic and Investigative Auditors of Nigeria (CIFIAN), Dr. Victoria Enape, traced the inability of the current administration in ending yearly deficit to paucity of fund caused by the disturbing endless cycle of IFFs in the petroleum sector.
However, reviewing the situation on how to change the trend, she argued that “We cannot continue to use the same approach and expect different result. People cannot be prosecuted without evidence. The evidence has to be substantial”.
According to him, “For people to be charge to court, we need admissible evidence in the court of competent jurisdiction. People, who are involved in this act easily destroy evidence because that is the key thing. This is the more reason why forensic and investigation experts are needed.”
She added that money launderers, cyber criminals, internet fraudsters were becoming very more daring and sophisticated, as the poor state of the economy is encouraging such crimes.
On the real masterminds, she averred that powerful individuals and corporate bodies, porous environment, high level of sophistication, the strife in the Niger Delta, and the activities of rent seekers have been aiding illicit financial flows.
However, speakers at the review called for continued national fight against corruption, implement the provisions of the anti-money laundering laws, the treaties and conventions Nigeria had signed with other countries, and apply maximum sanctions against those found guilty of the offence.
In his argument, the Executive Director, Civil Society Legislative Advocacy Centre (CISLAC), Auwal Musa Rafsanjani, traced the endless illicit flows from oil and gas industry on the Federal Government, stating that administrators and industry players operate in an opaque, non-transparent, and discretionary pattern in most cases.
CISLAC believes that early passage of Petroleum Industry Bill (PIB) will go a long way in taming the tide of national revenue losses in the sector.
