Terror fight costs Nigeria N6tr, tax evasion N5.4tr

Buhari

By Jeph Ajobaju, Chief Copy Editor

Nigeria’s war against terror has cost N6 trillion since 2008 and the country has lost over N5.4 trillion to tax evasion by corporate bodies since 2011, says  Economic and Financial Crimes Commission (EFCC) Chairman, Abrulrasheed Bawa.

Between June 2011 and March 2020, an estimated $18.34 million was paid in ransoms to kidnappers, SBM Intelligence based in Lagos had said in a report last year titled “The economics of the kidnap industry in Nigeria”, quoted by CNN.

Bawa disclosed his own sums in England at the weekend, saying since he assumed office in March, the anti-graft agency has recovered over N6 billion from financial and economic saboteurs, among them thieves in the oil and gas sector.

He cited the figures in a paper he presented at the 38th Cambridge International Symposium on Economic Crime, organised by the Centre for International Documentation on Organised and Economic Crime (CIDOEC), Jesus College, University of Cambridge.

Bawa, represented by his Deputy Chief of Staff, Sambo Mayana, said economic and financial crimes, including corruption in various forms in different nations, are at the core of global development and security challenges, per Vanguard reporting.

Negative impact of corruption, tax evasion, money laundering

Citing a report by the Organisation for Economic Cooperation and Development OECD, Bawa said “resources that could support a country’s development are lost through criminal acts like corruption, tax evasion, money laundering, and others.

“The ‘spoiler’ effects on countries’ development processes are diverse, and particularly severe for fragile states: economic crime, including illicit financial flows, diverts much needed resources needed to rebuild countries’ public services, from security and justice to basic social services such as health and education.”

But he insisted that all hope is not lost as Nigeria under President Muhammadu Buhari has demonstrated commitment and political will in dealing with economic crimes through legislative and institutional reforms.

He said the EFCC has recorded well over 3408 convictions as of August 2021.

“From the time I took over as the Executive Chairman, on the 5th of March 2021, we have recovered over N6 billion, over $161 million, over £13,000, €1,730, 200 Canadian dollars, CFA 373,000, ¥8,430 and 30 Real Estates.

“We have arrested over 1,500 internet fraudsters, many of whom are being prosecuted,” Bawa disclosed.

He urged leaders across the world to rise to the challenge of fighting corruption to enhance global economic development and security.

In his view, the absence of substantial improvement in the living conditions in African and other developing countries despite their natural resources endowment is due to pervasive economic crimes.

“The incidence of illegal mining, smuggling of goods, tax evasion, illegal oil bunkering, illegal arms deals – just to mention but a few – does not allow the government to receive the full accruals from the continent’s vast resources that are needed for development.

“The revenue generated are embezzled by government officials and their collaborators in the private sector. This does not allow for economic growth and by extension [is] a hindrance to development.”

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