Global
Financial Integrity (GFI) a Washington-based research and advocacy
organization has returned a damming indictment on Nigeria as the 7th
biggest money laundering country in the world.
Nigeria exported $19.66 billion by leaders who had access to the nation's money between 2000 and 2010.
Misappropriation of public funds in Nigeria is today recorded in billions and trillions of naira such that cases involving mere millions no longer elicit media scrutiny or a shocked reaction from the public.
According to GFI, in its newly released report, out of the 20 biggest exporters of illicit financial flows for decade, Nigeria occupies the 7th position.
The report which was co-authored by GFI Lead Economist Dev Kar and GFI Economist Sarah Freitas, is the first by GFI in incorporating a new, more conservative estimate of illicit financial flows facilitating comparisons with previous estimates from GFI updates, identifies crime, corruption and tax evasion at near historic highs with nearly $6 trillion stolen from poor countries within the decade and $859 billion in 2010.
China is leading the pack with $274 billion average ($2.74 trillion cumulative); followed by Mexico with $47.6 billion avg. ($476 billion cum.); Malaysia, $28.5 billion avg. ($285 billion cum.); Saudi Arabia, $21.0 billion avg. ($210 billion cum.); Russia, $15.2 billion avg. ($152 billion cum.); and Philippines, $13.8 billion avg. ($138 billion cum.).
“Astronomical sums of dirty money continue to flow out of the developing world and into offshore tax havens and developed country banks. Regardless of the methodology, it’s clear: developing economies are hemorrhaging more and more money at a time when rich and poor nations alike are struggling to spur economic growth. This report should be a wake-up call to world leaders that more must be done to address these harmful outflows,” Raymond Baker, GFI director said.
Moreover Kar explained further, “The estimates provided by either methodology are still likely to be extremely conservative as they do not include trade mispricing in services, same-invoice trade mispricing, hawala transactions, and dealings conducted in bulk cash. This means that much of the proceeds of drug trafficking, human smuggling, and other criminal activities, which are often settled in cash, are not included in these estimates.”
The report goes further, “The $858.8 billion of illicit outflows lost in 2010, according to the report, is a significant uptick from 2009, which saw developing countries lose $776.0 billion under the new methodology. “This has very big consequences for developing economies. Poor countries lost nearly a trillion dollars that could have been used to invest in healthcare, education, and infrastructure. It’s nearly a trillion dollars that could have been used to pull people out of poverty and save lives.”
Nigeria exported $19.66 billion by leaders who had access to the nation's money between 2000 and 2010.
Misappropriation of public funds in Nigeria is today recorded in billions and trillions of naira such that cases involving mere millions no longer elicit media scrutiny or a shocked reaction from the public.
According to GFI, in its newly released report, out of the 20 biggest exporters of illicit financial flows for decade, Nigeria occupies the 7th position.
The report which was co-authored by GFI Lead Economist Dev Kar and GFI Economist Sarah Freitas, is the first by GFI in incorporating a new, more conservative estimate of illicit financial flows facilitating comparisons with previous estimates from GFI updates, identifies crime, corruption and tax evasion at near historic highs with nearly $6 trillion stolen from poor countries within the decade and $859 billion in 2010.
China is leading the pack with $274 billion average ($2.74 trillion cumulative); followed by Mexico with $47.6 billion avg. ($476 billion cum.); Malaysia, $28.5 billion avg. ($285 billion cum.); Saudi Arabia, $21.0 billion avg. ($210 billion cum.); Russia, $15.2 billion avg. ($152 billion cum.); and Philippines, $13.8 billion avg. ($138 billion cum.).
“Astronomical sums of dirty money continue to flow out of the developing world and into offshore tax havens and developed country banks. Regardless of the methodology, it’s clear: developing economies are hemorrhaging more and more money at a time when rich and poor nations alike are struggling to spur economic growth. This report should be a wake-up call to world leaders that more must be done to address these harmful outflows,” Raymond Baker, GFI director said.
Moreover Kar explained further, “The estimates provided by either methodology are still likely to be extremely conservative as they do not include trade mispricing in services, same-invoice trade mispricing, hawala transactions, and dealings conducted in bulk cash. This means that much of the proceeds of drug trafficking, human smuggling, and other criminal activities, which are often settled in cash, are not included in these estimates.”
The report goes further, “The $858.8 billion of illicit outflows lost in 2010, according to the report, is a significant uptick from 2009, which saw developing countries lose $776.0 billion under the new methodology. “This has very big consequences for developing economies. Poor countries lost nearly a trillion dollars that could have been used to invest in healthcare, education, and infrastructure. It’s nearly a trillion dollars that could have been used to pull people out of poverty and save lives.”
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