Illicit Financial Flows: NLC, ITUC-Africa Query N38trn Tax Waivers

By Chinedu Echianu

The Nigeria Labour Congress (NLC), the African Regional Organisation of the International Trade Union Confederation (ITUC-Africa) and their civil society allies have called for stronger action to tackle kleptocracy, illicit financial flows and corruption in Nigeria.

The call followed a three-day stakeholder engagement on illicit financial flows, kleptocracy and inequality, which brought together organised labour, civil society organisations and other critical stakeholders to examine the factors driving the movement of illicit funds out of Nigeria and their impact on citizens.

Presenting the communique at the end of the engagement, NLC representative Eustace James described kleptocracy and illicit financial flows as an “act of war” against Nigerians, arguing that every naira and dollar stolen from public resources represents money that could have been used to provide wages, healthcare, education and infrastructure.

The labour movement said workers and ordinary Nigerians are the primary victims of the diversion of public resources, while a small group continues to benefit from the country’s wealth.

According to the communique, Nigeria accounts for about 79 per cent of illicit financial flows in West Africa, while Africa loses an estimated 50 billion dollars annually to illicit financial flows. It also cited a 2014 estimate of 105.7 billion dollars in trade-related illicit financial flows from Africa.

The group criticised what it described as a system that demands sacrifices from workers through austerity measures while allowing wealthy individuals and businesses to benefit from tax concessions and other incentives.

It also alleged that about 38 trillion naira in tax waivers was granted in 2025, while the government simultaneously faced a budget deficit of about 24 trillion naira.

The NLC and its allies further argued that weak institutions, political interference, deficiencies in the justice system and inadequate enforcement mechanisms have created an environment in which corruption can thrive.

They expressed concern over the low success rate in prosecuting high-profile corruption cases involving politically exposed persons, compared with lower-level financial crimes.

The communique linked the country’s economic difficulties and growing youth migration to the loss of public resources, arguing that the inability to provide decent wages, jobs and opportunities is partly a consequence of corruption and illicit financial flows.

The labour and civil society groups said they would no longer remain spectators in the fight against corruption, announcing plans to develop a national action plan and establish a broader alliance with civil society and other progressive organisations.

Whistleblower protection law demanded

One of their major demands is the enactment of a comprehensive whistleblower protection law to replace the existing 2016 policy.

The groups want the proposed legislation to provide secure reporting channels, protection against dismissal, intimidation and harassment, as well as a statutory reward for whistleblowers.

They argued that workers are often the first people to discover wrongdoing in organisations and should therefore be able to report corruption without fear of retaliation.

They also called for stronger financial autonomy and tenure security for the leadership of anti-corruption institutions, including the Economic and Financial Crimes Commission (EFCC), Independent Corrupt Practices and Other Related Offences Commission (ICPC), Nigeria Financial Intelligence Unit (NFIU) and Code of Conduct Bureau (CCB).

The groups further demanded greater transparency in beneficial ownership, particularly in the oil, mining, electricity and land sectors, to prevent politically exposed persons from concealing ownership through layers of companies.

On public procurement, they called for competitive bidding, regular audits and public access to contract information, as well as tougher sanctions for contract inflation and abandoned or fictitious projects.

They also called for financial institutions that facilitate money laundering to face criminal sanctions and urged regulators to close loopholes in the fintech and foreign exchange sectors.

The communique further proposed specialised anti-corruption courts to strengthen the prosecution of high-profile corruption cases and reduce delays in the judicial process.

ITUC-Africa pledges support

Commenting on the communique, ITUC-Africa General Secretary Joel Odigie said the most important message from the engagement was the commitment by organised labour and civil society to move beyond discussion and take concrete action against corruption and illicit financial flows.

Odigie said ITUC-Africa was ready to support the initiatives outlined in the communique, particularly the campaign for legislation to protect whistleblowers.

He said the labour movement and its civil society partners had resolved to build a “community of practice” where organisations and individuals committed to fighting corruption could work together and share experience.

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