Illicit Financial Flows

Illicit Transfers and Tax Reforms in Nigeria: Mapping of the Literature and Synthesis of the Evidence

Available evidence for the period 1970 to 2008 shows that Nigeria is a major source country for illicit financial transfers out of Africa. The Global Financial Integrity Report (2010) was the first to draw global attention to the volume of Illicit Financial Flows out of Nigeria. According to the report which covered the period from 1980 – 2009, Africa was a net creditor to the world, net resource transfers of between $597 billion – $1.4 trillion left Africa over this period. Illicit Financial Flows were the main driver of net resource transfers out of Africa. In terms of volume, Nigeria, Egypt and South Africa led the regional outflows. Studies by Ndikumana and Boyce (2008, 2010, 2014) analysing capital flows in and out of African countries show that African countries have experienced massive outflows of capital towards Western financial centres. These outflows were higher than the continent’s foreign liabilities making Sub-Saharan Africa a “net creditor” to the rest of the world (Ndikumana and Boyce, 2008). According to Ndikumana (2017), as of 2010, the continent was a net creditor to the world to the tune of US$1.4 trillion (Ndikumana, et al, 2015). These studies by the Global Financial Integrity and Ndikumana and Boyce (2008) also show that Nigeria was the top source of capital flight through illicit financial flows from Africa. These findings were reiterated in the 2015 report of the African Union’s High-Level Panel on Illicit Financial Flows from Africa.

Publications

1. Illicit Transfers and Tax Reforms in Nigeria: Mapping of the Literature and Synthesis of the Evidence
2. Nigeria, hemorrhaging from organised illicit financial flows

Illicit Transfers and Tax Reforms in South Africa: Mapping of the Literature and Synthesis of the Evidence

This synthesis report reviews the available literature and relevant policies pertaining to illicit transfers and tax reform landscape. It further identifies key stakeholders in South Africa in order to articulate the key attributes that could make the taxation regime more
effective.

Publications

1. Illicit Transfers and Tax Reforms in South Africa: Mapping of the Literature and Synthesis of the Evidence

Illicit Transfers and Tax Reforms in Egypt: Mapping of the Literature and Synthesis of the Evidence

The purpose of this study was to synthesise the literature on IFFs and tax reforms in Egypt, map the key stakeholders and derive policy recommendations to improve, facilitate, or maximise the impact of existing initiatives or related key stakeholders. The study relies on a qualitative methodology based on a desk review that involves: a) Mapping and synthesising the available literature (including grey
literature) on illicit outflows and tax reform in Egypt; b) Identifying the involved stakeholders/actors and c) Analysing existing policies and proposed initiatives to curb IFFs and enforce tax reform.

Publications

1. Illicit Transfers and Tax Reforms in Egypt: Mapping of the Literature and Synthesis of the Evidence

Illicit Transfers and Tax Reforms in Kenya: Mapping of the Literature and Synthesis of the Evidence

Illicit Financial Flows (IFFs) are a persistent challenge in developing countries, particularly in Sub-Saharan Africa (SSA). IFFs account for huge sums of money transferred out of SSA countries illegally, stripping these countries of resources that could be used to finance much-needed public services such as security, justice, education, and health. This synthesis brings together the evidence on IFFs and interrogates common themes, practices, and policies on IFFs and associated tax reforms to tackle IFFs in Kenya. It analyses the evidence on nature, magnitude, determinants and implications of IFFs and assesses to what extent institutional policy and legal frameworks have succeeded in curbing IFFs.

Publications

1. Illicit Transfers and Tax Reforms in Kenya: Mapping of the Literature and Synthesis of the Evidence