EFCC Chairman recommends blockchain, AI for tracking and recovering $88.6 billion stolen from Africa 

Highlighting the significant economic loss, Olukoyede emphasized the urgent need for advanced strategies during his keynote address at the Pan-African Conference on Illicit Financial Flows and Taxation. 

Olukoyede pointed out that Africa loses $88.6 billion each year to IFFs, funds that could otherwise be invested in critical infrastructure, healthcare, and education.  

He cited successful recoveries, such as the $311 million linked to Nigeria’s former Head of State, Sani Abacha, which was repatriated from the United States in 2020, as examples of effective international cooperation. 

Illicit Financial Flows in Africa 

The issue of illicit financial flows has been a long-standing challenge for African countries. The notorious Abacha loot, for instance, has seen multiple recoveries over the years.  

“Illlicit financial flows pose a grave challenge to Africa’s economic stability and development,” Olukoyede stated.  

“Over $88.6 billion is illicitly siphoned from the continent annually, funds that could otherwise be channelled towards critical infrastructure, healthcare, and education.” 

Recently, on November 3, 2023, President Bola Tinubu expressed gratitude to France for returning $150 million stolen by the former Nigerian Head of State.  

Olukoyede stressed that IFFs severely undermine Africa’s economic stability and development, necessitating robust measures to tackle the issue. 

He also stated the importance of international cooperation, citing the Stolen Asset Recovery Initiative (StAR), a partnership between the World Bank and the United Nations Office on Drugs and Crime (UNODC), as “pivotal” in facilitating these efforts. 

Proposed Strategies 

Olukoyede outlined several key strategies to address IFFs: 

Collaboration: Emphasizing the importance of international cooperation, Olukoyede highlighted initiatives like the Stolen Asset Recovery Initiative (StAR), a partnership between the World Bank and the United Nations Office on Drugs and Crime (UNODC).  

Stricter Legal Frameworks: Olukoyede called for the establishment of robust legal frameworks and capacity building to enhance coordination at national, regional, and international levels.  

International Pressure: Stressing the importance of strong advocacy, Olukoyede stated that fighting corruption would be ineffective without international pressure to ensure cooperation from tax havens and low-tax jurisdictions. 

International Pressure: Stressing the importance of strong advocacy, Olukoyede stated that fighting corruption would be ineffective without international pressure to ensure cooperation from tax havens and low-tax jurisdictions. 

Addressing the challenges in asset recovery, Olukoyede highlighted the technical, legal, and political hurdles that complicate the process of tracing, freezing, and repatriating illicit funds. He called for the strengthening of legal and institutional frameworks across African countries to better combat IFFs. 

“Technical, legal, and political hurdles complicate the process of tracing, freezing, and repatriating illicit funds,” Olukoyede noted. “Strengthening legal and institutional frameworks across African countries is essential to better combat illicit financial flows.” 

The Pan-African Conference on Illicit Financial Flows (PAC) is the premier annual forum of the African Union (AU).  

By implementing these strategies, African countries can significantly reduce the economic drain caused by illicit financial flows and redirect these funds towards vital developmental projects.