ICPC: Tax evasion, cybercrime, others fuel Africa’s $50b yearly financial leak

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.