A report by a United States-based organisation that promotes financial accountability, Global Financial Integrity, has ranked Nigeria as one of the top countries in the world with illicit financial outflows and tax evasion valued at $129bn in the past decade.

The report entitled, ‘Illicit financial flows from the developing countries: 2001-2010,’ made available to our correspondent on Thursday, showed that the developing world lost $859bn in illicit outflows in 2010, an increase of 11 per cent over 2009 figure.

According to the report, the capital outflows stemmed from crime, corruption, tax evasion and other illicit activities.

The report stated that developing countries lost $5.86tn to illicit financial outflows from 2001 to 2010.

China topped the list with a loss of $2.74tn, followed by Mexico ($476bn), and Malaysia ($285bn).

Saudi Arabia ($210bn), Russia ($152bn) and the Philippines ($138bn) were ranked fourth, fifth, and sixth, respectively, while India ($123bn), Indonesia ($109bn) and United Arab Emirates ($107bn) completed the top 10.

The report stated that illicit financial flows had increased in every region of the developing countries.

A breakdown of the loss showed that Africa accounted for 23.8 per cent, followed by the Middle East and North Africa with 26.3 per cent. Developing Europe, Asia and the Western Hemisphere accounted for 3.6, 7.8 and 2.7 per cent, respectively.

“The report presents four different methodologies for estimating illicit financial flows from developing countries, including the methodology used in the Global Financial Integrity’s previous research, and encourages scholars and experts to weigh in which best estimates illicit financial flows,” GFI explained.

According to the report, trade mis-pricing was found to account for an average of 80 per cent of the cumulative illicit flows from developing countries over the period 2001-2010 and is the major channel for the transfer of illicit capital from China and Mexico.

The Director, GFI, Raymond Baker, said, “Astronomical sums of dirty money continue to flow out of the developing world and into offshore tax havens and developed countries’ banks.

“Developing countries are haemorrhaging 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.”
http://www.punchng.com/business/business-economy/nigeria-lost-129bn-to-illegal-financial-outflows-report-2/

illegal financial outflows - an euphemistic way of saying 'corruption'

scipher: illegal financial outflows - an euphemistic way of saying 'corruption'

Well, 'corruption' is only one of the factors. The inefficient tax regime used by the FG (through the FIRS) is another key factor.

CFCfan:
Well, 'corruption' is only one of the factors. The inefficient tax regime used by the FG (through the FIRS) is another key factor.

What happened to the reformation of the FIRS initiated by Obasanjo when through Mrs Omogui, Nigeria's IGR through taxes sky rocketed within a couple of years?

Imagine if that reformation was sustained and improved upon, would Nigeria, and indeed the Federal Government be resorting to China for money to construct ordinary six lane road in Abuja?

Omo_Tier1:
What happened to the reformation of the FIRS initiated by Obasanjo when through Mrs Omogui, Nigeria's IGR through taxes sky rocketed within a couple of years?

Imagine if that reformation was sustained and improved upon, would Nigeria, and indeed the Federal Government be resorting to China for money to construct ordinary six lane road in Abuja?

That is simply the tragedy of our present political-economic climate. The leaders seem to be content with a rent-seeking system. Even the 5 airport terminals could have been funded from the FG's share of the revenue.

CFCfan:

That is simply the tragedy of our present political-economic climate. The leaders seem to be content with a rent-seeking system. Even the 5 airport terminals could have been funded from the FG's share of the revenue.

It is indeed a tragedy! I tell you, if only Nigeria can be graced with leadership that has a vision, within 10 years, the whole country would be turned inside out by very sensible taxation system.

I remember in 2005 having a discussion about the FG IGR with an expert on this subject, and how impressively the income went up so sharply.

I encourage you to read this interesting presentation:

http://www.firs.gov.ng/Resource-Centre/speeches/Internally%20Generated%20Revenue(IGR)%20and%20the%20Challenges%20of%20National%20Development.pdf

^^
Thanks for the link.

That is what happens when you hand over government to those things from the creeks.
The foundation of the government is being destroyed one brick at a time.