By Grace Edet

Africa is losing more than $50 billion every year to illicit financial flows (IFFs), a drain that is stifling development, eroding public revenues and undermining the continent’s long-term economic goals, the Independent Corrupt Practices and Other Related Offences Commission (ICPC) has warned.
ICPC Chairman, Dr. Musa Aliyu, gave the warning on Wednesday at the RealNews Magazine 13th Anniversary Lecture in Lagos, where he described the persistent capital flight as “one of the most devastating drains on Africa’s development capacity.”
According to him, the lost funds—diverted through tax evasion, corruption, illegal mining, wildlife trafficking, profit shifting, and cyber-enabled crime, could have financed schools, hospitals, roads and other critical public infrastructure.
He said: “Illicit financial flows, whether through tax evasion, corruption or cybercrime, have become a silent crisis that threatens Africa’s sovereignty and the future of its youth.”
Aliyu disclosed that ICPC investigations have exposed cases where multinational corporations manipulated trade figures and inflated operating costs to evade taxes. In one instance, he said, a major firm exaggerated its expenses to shrink its taxable profit, adding: “The amount lost would have been enough to construct a world-class hospital in Nigeria.”
He described trade mispricing, profit shifting and tax evasion as “some of the biggest contributors to financial leakages,” noting that corrupt officials also worsened the crisis by diverting public funds through multiple bank accounts, often with the collusion of financial institutions.
The ICPC chairman warned that Africa’s rapid digital transition, where mobile-money usage has surpassed 50 percent in several countries, has exposed the region to an unprecedented wave of cyber-enabled crimes.
He said: “Cyber criminals are becoming more sophisticated. Ransomware attacks, cryptocurrency-based laundering and mobile-money fraud are growing threats.”
Aliyu added that criminal networks often possess more advanced tools and resources than enforcement agencies, making it increasingly difficult to track stolen funds once they leave African jurisdictions. He also highlighted ongoing ICPC investigations into ghost-worker syndicates manipulating payroll systems to divert salaries.
To curb the losses, he urged the National Assembly to speed up the passage of the Whistleblower Protection Bill, stressing that citizens cannot provide critical intelligence “if they are not protected.”
He also called for stronger cyber laws, improved digital infrastructure, dedicated training for enforcement agencies, and full implementation of the Malabo Convention on Cybersecurity and Data Protection.
He emphasised the need for African countries to adopt a coordinated approach to asset recovery and demand the return of looted funds and cultural artefacts held abroad.
“We must secure our financial systems and protect our digital space. Only then can Africa realise its full potential,” he said.
Chairperson of the event and former Chief Judge of Lagos State, Justice Ayotunde Phillips, also urged African governments and the private sector to prioritise the continent’s development and cybersecurity agenda.
She warned that growing vulnerabilities in digital transactions were worsening capital flight from the continent, stressing: “We should not joke with this; progress requires commitment from both government and private actors.”
Phillips said Africa had the capacity to strengthen its economic and security frameworks, but success would depend on consistency and serious implementation of agreed plans.

• Reversal will trigger rise in forex, says Dr. Yusuf
• Policy is fiscal and market-stabilising instrument, says Prof Iledare

Experts and other stakeholders yesterday warned the country of jeopardisng long term national interests for short term measures. The experts, including economists, oil marketers, chambers of commerce and industry leaders, and other stakeholders, were reacting to the suspension of the of the implementation of the 15 per cent ad valorem import duty on imported Premium Motor Spirit and Diesel by the federal government.
Last week, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), in a statement posted on its X handle had informed the public of government’s suspension of the implementation of the tax.
“It should also be noted that the implementation of the 15 per cent ad-valorem import duty on imported Premium Motor Spirit and Diesel is no longer in view,” the Director, Public Affairs Department, NMDPRA, George Ene-Ita, said in the post.
“Nigeria must avoid short-term measures that jeopardise long-term national interests. The suspension of the 15 per cent import duty on petroleum products puts at risk energy security; industrialization; foreign exchange stability; job creation; backward integration and national economic sovereignty.
“Therefore, protecting domestic refining capacity is an urgent national imperative. Reinstating protective measures, supporting local refiners, ensuring policy predictability and regulating import volumes are essential steps toward securing Nigeria’s industrial future,” the Chief Executive Officer, Center for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, in a statement made available to TheTrustNews.com, yesterday.
For professor of petroleum economics, Prof. Wumi Iledare, the 15 per cent import duty should have been viewed as a fiscal and market-stabilising instrument, not a political gesture.
While some stakeholders see the development as a step in the right direction, yet, others argued that it is a disservice to local refinery, investment in the sector and by extension, a negative for the country’s overall economy.
For the Independent Petroleum Marketers Association of Nigeria (IPMAN), the suspension of the tax will affect sector and economy in both the short and long term.
“Well, if we view the suspension for the immediate gain, then we can say it is a good development; but for the future, it is not a good development. The reason is that provided that there is no tax or charges on the imports, our local refineries will not be patronised because their product will be a little bit costlier than imported products,” IPMAN President, Abubakar Maigandi, told TheTrustNews.com in a telephone chat at the weekend.
Yet another oil marketer who pleaded anonymity, agreed that government should go ahead with the implementation of the tax if only for the benefits it offers. These benefits our source listed to include reduced pressure on foreign exchange considering that importation of petroleum products is dollar denominated.
“The truth and reality is that government should implement that 15 per cent tax on petroleum products importation because it will help our economy. The reason why you see Naira now a little bit stable compared to before, is because of the reduction of purchasing outside. And if we want to encourage the Nigerian company, actually we have to, the government has to do that; they have to put that tax.
“This is a reality, but you know people don’t want to hear it, they put politics into it and is not good for our economy. The 15 per cent tax on fuel import will help the indigenous companies or refineries- all these refineries just coming up, people doing business; it will encourage them to do business, an foreign investors too will come into the sector with the needed investment,” the source, a high ranking stakeholder in the oil industry, said.
On fears that there could be fuel shortage as the yuletide approaches if the policy is implemented, the CPPE boss argued that while domestic refineries are expected to meet national demand within a short horizon, temporary supply gaps should be addressed not by dismantling protective measures but through guided, quota-based importation to supplement domestic output.
Yusuf noted that the suspension of the 15 per cent import duty on petrol and diesel carries profound implications for domestic refining, investment confidence, macroeconomic stability and the long-term competitiveness of the petroleum downstream sector.
He called for the reinstatement of the tax which he described as “essential to restoring competitive balance and safeguarding domestic refining investments.” According to him, the policy was aimed to serve as an industrial protection instrument designed to support emerging private refineries; promote backward integration and industrial development; ensure a level playing field for domestic producers; conserve scarce foreign exchange; protect jobs, stimulate local value addition; reduce exposure to global supply instability and encourage long-term investments in refining and petrochemicals
These objectives, laudable as they are, are now being threatened with the policy suspension. For instance, Dr. Yusuf noted that investors, including the Dangote Refinery and other modular refinery operators, made multi-billion-dollar commitments based on policy stability and the assurance of an environment that rewards local production. Therefore, he argued, suspending the duty undermines this protective framework and exposes domestic refiners to inequitable competition from importers benefiting from vastly superior international conditions.
According to the CPPE boss, local refiners operate within a high-cost environment shaped by expensive energy and self-generation; infrastructure gaps and logistics bottlenecks; high cost of capital; security-related risks and inefficiencies in ports and transport systems. These structural disadvantages, he argued, make parity with imported products impossible without protective measures.
He warned that reverting to heavy import dependence reopens vulnerabilities to global price volatility, geopolitical disruptions and supply insecurity- the same conditions that previously collapsed public refineries and created a fiscally ruinous subsidy regime.
Yusuf, an economist, equally agreed that petroleum importation is one of Nigeria’s largest consumers of foreign exchange. Consequently, he explained that increased imports of the product will heighten pressure on the naira; fuel inflation through exchange-rate pass-through; deepen balance-of-payments deficits and undermine macroeconomic stability.
This, he said will further come with loss of jobs and industrial value chains given that domestic refining stimulates broad value-chain activities in petrochemicals; plastics; logistics and transport; engineering services and fabrication and construction. Therefore, having an unrestrained importation effectively exports these jobs and opportunities to foreign economies.
The CPPE warned that frequent policy reversals weaken investor sentiment across the economy including refining and downstream operations; domestic manufacturing; financial institutions and global investment partners.
“Undermining confidence at this stage threatens the viability of transformational national assets such as the Dangote Refinery and modular refineries,” Dr. Yusuf said.
Justifying the need to protect indigenous firms, the CPPE boss explained that fair competition requires comparable operating conditions. He enumerated the challenges faced by Nigerian refiners to include infrastructure deficits; higher finance costs; insecure operating environments; elevated logistics costs and demurrage and weak transport and storage systems.
“Importers face none of these disadvantages. Without protective measures, domestic refiners operate at a structural disadvantage. The Dangote Refinery and emerging modular refineries are transformative national assets. Safeguarding them aligns squarely with Nigeria’s long-term economic and strategic goals,” the CPPE said.
He cited major economies that protects their strategic industries to include the United States which jealously guards her steel, agriculture, aviation, energy sectors; European Union which protects its manufacturing, agriculture, pharmaceuticals; India guards her refining and petrochemicals and China, which devised a comprehensive industrial policy to protect local capacity.
“Nigeria already maintains an Import Adjustment Tax List for strategic sectors such as agro allied, cement, sugar, steel, pharmaceuticals and automobiles. Therefore, extending similar protection to domestic refining is both logical and necessary,” Dr. Yusuf said.
He further argued that there exists a false dichotomy between domestic refining and price stability. “Strengthening refining capacity and moderating fuel prices are not mutually exclusive. With the right policy mix—including fiscal incentives, logistics support, transparent pricing and guided importation, Nigeria can achieve both goals simultaneously, because domestic refining, over the long term, reduces costs by limiting forex exposure, import-related logistics and premiums associated with global volatility,” Dr. Yusuf said.
In similar vein, the Ogun State Chamber of Commerce, Industry, Mines and Agriculture (OGUNCCIMA) also faulted the Federal Government’s decision to suspend the proposed implementation of the 15 per cent import duty on petrol and diesel imports. It insisted that the rescinding of the policy could slow down the nation’s progress toward energy independence and weaken investor confidence in the refining sector.
“The suspension of the 15 per cent fuel import tariff is disappointing. The policy was a step in the right direction to promote local refining, reduce dependence on imports, conserve foreign exchange and create a fair competitive environment for domestic producers. Its reversal sends a wrong signal to investors who have shown confidence in Nigeria’s energy sector,” OGUNCCIMA’s President, Niyi Oshiyemi, said.
A professor of petroleum economics, Prof. Wumi Iledare, argued that the 15 per cent import duty should have been viewed as a fiscal and market-stabilising instrument, not a political gesture.
“The intent is clear — to protect emerging local refineries, encourage domestic value addition, and gradually align Nigeria’s downstream market with its growing industrial capacity. In economic terms, this policy aimed to reduce import dependence, conserve foreign exchange, and support refinery viability. Domestic producers like Dangote Refinery and the rehabilitated NNPC plants need a short breathing space to stabilise operations and recover heavy capital investments. Many countries have used such temporary tariffs to nurture new industries.
“Of course, prices may rise slightly in the short term — but that’s part of the transition toward long-term efficiency where Nigeria meets its own fuel needs competitively. Let’s keep things in perspective: petrol here sells around N890–N965 per litre, while in Benin N1,800–N1,875, Togo N1,835, Ghana N1,550–N1,995, and Senegal N2,538. Nigeria still remains the lowest-priced market in the sub-region. The task now is ensuring border vigilance and market discipline to prevent arbitrage,” he contended.

By Olamide Akintunde

The Federal Government’s new tax regime, scheduled to take effect in January 2026, is expected to improve efficiency and profitability in Nigeria’s haulage and logistics industry by eliminating multiple taxation and curbing extortion on the nation’s roads.
Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, said the reforms were part of a deliberate effort to stabilise the economy and translate macroeconomic gains into tangible relief for businesses and citizens.
Speaking at the Haulage and Logistics Magazine Annual Conference and Exhibition held in Lagos, with the theme “Tax Reforms From Policy to Practice: Challenges and Opportunities for the Nigerian Haulage Industry,” Oyedele said the sector stands to be among the biggest beneficiaries of the sweeping changes.
He said: ” There is no doubt that the haulage and logistics industry in Nigeria stands to be one of the biggest beneficiaries of this tax reform in view of the fact that the reform intends to tackle headlong the issue of multiple taxation.
“Officially, there are over 60 taxes and levies that businesses pay in Nigeria. Officially, even that does not make sense. By the time you add unofficial to it, it is more than 200 taxes in a country where they want to create employment. Some of those nuisance levies and taxes are even in our constitution.”
He pointed out that the tax reforms have outlawed road extortion.
The other thing we have done with this tax harmonisation is to outlaw physical barriers for tax collection. Why do we have to put wood on the road with nails? We are now saying under these reforms nobody should have to physically provide any hindrance, roadblock, impediment because they want to collect tax.
“No one should collect taxes in cash because that cash is not even getting to the government,” Oyedele said.
He added that government will deploy technology as a substitute for tax collection.
He said: “If the government decides that you are a big transport company, your vehicle should pay N100,000. We ask you to pay and say Madame Transporter or Mr Transporter you have up until the end of March for example, I’m not saying that’s what is in the law, to pay for the year, if by March you have not and you can even pay in installment the day you find N5,000 go and pay you find N10,000, pay if you have not finished paying by the end of March, you know I can collect that money without showing up.
“I’m trying to demonstrate to you that we are in 2025. It’s called the age of technology. It is embarrassing as a country to go and put wood with nails on the road and be fighting people.”
The convener of the conference, Alfred Okugbeni, in his opening remarks, reiterated that the haulage sector was one impacted by the tax reforms.
He said: “A critical aspect of the reform is the elimination of several taxes, multiple taxation, and illegal levies which continue to inflate the cost of transporting goods in our country.”