Key Points
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Africa loses $88.6 billion annually to illicit financial flows, harming economic stability.
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Corruption and weak financial systems are major contributors to these losses.
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ECOWAS is working to enhance the capacity of anti-corruption institutions through training and cooperation.
The Economic Community of West African States (ECOWAS) recently revealed that illicit financial flows cost Africa an astonishing $88.6 billion every year.
This statement came from Abdel-Fatau Musah, ECOWAS Commissioner for Political Affairs, Peace, and Security, during a training session for anti-corruption institutions across its member states. The training, held in Zuba, Niger State, on April 7, 2025, aimed to address this pressing issue.
The impact of illicit financial flows
Illicit financial flows refer to the illegal movement of money across borders. This includes corruption, smuggling, tax evasion, and even terrorist financing.
According to Musah, corruption is a key factor driving these illegal financial flows, weakening democracy and hindering development in the region.
Musah explained that Africa loses 3.7% of its GDP every year due to these illegal transactions. This significant loss undermines economic growth and social progress across the continent.
He also pointed out that weak laws, poor enforcement, and bribery contribute to these financial losses, leaving African nations without the necessary resources to fund vital public programs.
Addressing emerging financial risks
Another challenge Musah highlighted was the rise of cryptocurrencies and other online financial systems. As the financial landscape evolves, these new systems have introduced risks that further complicate efforts to combat illicit financial flows.
Musah stressed that anti-corruption institutions must adapt by developing specialized skills to address these emerging challenges effectively.
This training, part of ECOWAS’s commitment to strengthening anti-corruption institutions, aims to equip participants with advanced investigative techniques. These tools are essential for detecting, countering, and recovering assets linked to financial crimes.
A call for regional cooperation
Ola Olukoyede, the chairman of Nigeria’s Economic and Financial Crimes Commission (EFCC), also spoke at the event. He emphasized the importance of regional cooperation and capacity-building efforts to tackle corruption, money laundering, terrorism financing, and other financial crimes.
Olukoyede praised the strategic partnership between the ECOWAS commission, the EFCC, and the Network of Anti-Corruption Institutions in West Africa (NACIWA) in making this training possible.
