Nigeria senate moves to block Nigeria’s revenue loss to money laundering and tax evasion

Although we are headquartered in Washington D.C. USA, our reporters and editors are working around the globe to cover what you care about. Become our exclusive member and help us keep our quality news free and available for all.

The Nigerian Senate on Wednesday moved to block Nigeria’s revenue loss owing to money laundering, tax evasion by international oil companies operating in the country (IOCs), proceeds of corruption and other criminal activities involving illicit financial flows.

The decision to so do was reached in resolutions reached sequel to the consideration of a motion on “the need to review the domestic legal framework against illicit Financial Flows and to consider the creation of a Tax Amnesty for the voluntary repatriation of funds to Nigeria.”

The upper chamber, accordingly, resolved to invite the Minister of Finance, Budget and National Planning, Zainab Ahmed, and the Heads of the Federal Inland Revenue Service (FIRS); Economic and Financial Crimes Commission (EFCC); Central Bank of Nigeria (CBN); and Independent Corrupt Practices Commission (ICPC) to brief the Senate Committees on Finance, Anti-Corruption and Financial Crimes; Banking, Insurance and other Financial Institutions on measures being sought to curb revenue loss, and curb tax evasion and money laundering activities.

Also to be invited are the Heads of the Nigerian Financial Intelligence Unit (NFIU); the Nigerian Export-Import Bank (NEXIM); Nigerian National Petroleum Corporation (NNPC) among other relevant institutions.

The upper chamber while mandating the Senate Committees on Finance, Anti-Corruption and Financial Crimes; Banking, Insurance and other Financial Institutions to investigate illicit financial flows, called for an appraisal of the Federal Inland Revenue Service’s (FIRS) current framework for tracing, identifying, preventing and sanctioning Cross-border tax evasion and other illicit financial outflows.

The Senate also mandated the Committee to come up with a holistic legislative framework on how to repatriate lost revenue due to illicit financial flows, mitigate such future unabated flows and provide an efficiency strategy for the reinvestment of repatriated resources into the Nigerian economy.

Sponsor of the motion, Senator Gershom Bassey (PDP – Cross River South), in his presentation, while citing a 2014 Global Financial Integrity Report said, “Nigeria lost a minimum of US$140 billion to illicit financial flows between 2000 and 2014, mainly to crude oil and commercial activities mis-pricing.”

According to the lawmaker, “this economic loss to the country was not abated, as Nigeria was ranked among the global top 30 countries of illicit financial outflows by dollar value, with US$8.3 billion in illicit outflow from Nigeria in 2015.”

Bassey expressed worry at further findings by the Tax Justice Network and International Monetary Fund, “that developing countries, including Nigeria, have lost over US$200 billion per year to illicit financial flows as multinational corporations neglect, fail and/or refuse to pay taxes in these countries where they generate substantial amounts of profit.”

“Nigeria loses approximately US15billion annually to offshore tax evasion. This has resulted in a consistently low tax revenue as a percentage of Gross Domestic Product (GDP), as low as 5.7 percent in 2017. Such statistics are alarming, especially when compared to the 17.2 percent average of 26 African countries in the same year”, Bassey said.

He added that, “this incessant financial drain on the Nigerian economy continues to have negative implications for domestic resource mobilization and long-term economic growth and development.”

“IFFs continue to pose serious obstacles to development, as approximately five percent of the IFFs from Africa can be attributed to corruption, while 95 percent of IFFs come commercial and criminal activities. These unrecorded and untaxed Cross-border transfers, could have been mobilized as part of government revenue and injected into Nigeria’s formal economy towards sustained development and economic growth”, the lawmaker noted.

Bassey expressed concern that “statistics show that the amount of revenue lost annually by Nigeria is more than the sums provided as development aid.”

“For example, the net official development aid received by Nigeria in 2017 was US$3,358,790,000. Additionally, the United States Agency for International Development (USAID) has donated over US$526.7 million in humanitarian assistance to Nigeria and the Lake Chad Basin, since 2017. Neither of the above figures match the estimated US$15 and US$18 billion Nigeria loses to IFFs annually”, Bassey added.

The lawmaker lamented that though Nigeria has at least 12 institutions and agencies responsible for tackling illicit financial flows (IFFs), the country “continues to be menaced by weak regulatory structures and the complicity of other financial secrecy jurisdictions, among others.”

He added that global awareness has prompted governments across the world to develop measures and policies aimed at eradicating the perpetuation of illicit financial flows (IFFs), such as the Organization for Economic Co-operation and Development (OECD) Common Reporting Standard (CRS).

Bassey stressed that with the domestication and implementation of such international legal framework, Nigeria stands to curb future revenue losses due to tax evasion.

Read full article

TODAY NEWS AFRICA
TODAY NEWS AFRICAhttps://todaynewsafrica.com
TODAY NEWS AFRICA is registered and headquartered in Washington, District of Columbia, United States of America. Our publication is widely read, respected and influential. By providing daily answers to questions our readers have about the people, the businesses and the continent of Africa, we are reaching a diverse and wide audience from around the world. Our readers, many of them world leaders, trust us because we are independent and truthful. Our advertisers understand the difference between news, views and ads. Contact us: contactus@todaynewsafrica.com

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Trending Now

MOST POPULAR

Human rights group lists 10 things Burundi’s new government can do to improve human rights

Amnesty International has listed 10 things the new government of Burundi can do to improve the country's human rights.

South Africa radio legend Bob Mabena is dead at 51

President Cyril Ramaphosa has conveyed his heartfelt condolences on the passing of legendary radio personality Bob Mabena, who passed away this...

MERCILESS: Police looking for someone who set house on fire, killing five members of Senegalese family in Denver, Colorado

The police in the United States are looking for someone or some people who are believed to have set a house...

Nigerian President calls for patience, vows to restore security throughout the nation

President Muhammadu Buhari Monday gave strong assurances that security will be restored to Borno State, the Northeast and the nation at...

Ethiopian Defense Minister Lemma Megerssa, two top officials suspended

Ethiopian Defense Minister Lemma Megerssa and two other top officials have been suspended from the ruling Prosperity Party’s central committee.
- Advertisement -

LATEST STORIES

MERCILESS: Police looking for someone who set house on fire, killing five members of Senegalese family in Denver, Colorado

The police in the United States are looking for someone or some people who are believed to have set a house...

Watch President Donald Trump’s latest explosive interview in full where many of his lies were debunked

In this explosive interview, President Donald Trump discusses his mishandling of the coronavirus pandemic, the upcoming election, the human rights icon,...

Former Nigerian President Olusegun Obasanjo mocks former Senator Buruji Kashamu who just died from COVID-19

Former Nigerian President Olusegun Obasanjo has mocked a former Nigerian Senator Buruji Kashamu who died from COVID-19 on Saturday.

Kristalina Georgieva calls on Lebanon to reform to receive financial assistance from IMF

The Managing Director of the International Monetary Fund (IMF) Ms. Kristalina Georgieva said on Sunday that Lebanon should embrace reforms to...

68 percent of people who contracted COVID-19 in Africa have recovered while five countries – South Africa, Egypt, Nigeria, Ghana and Algeria account for 75 percent of all cases

About 68 percent of people who contracted COVID-19 in Africa have recovered, the Africa CDC announced at a briefing on Thursday.

[/read_more]

Read full article

error: Alert: Content is protected !!
Share
Tweet
Share
Reddit
WhatsApp