From Ndubuisi Orji, Abuja
The speaker of the House of Representatives, Tajudeen Abbas, has said that Nigeria loses about $18 billion, representing 3.8 of the country’s Gross Domestic Product ( GDP) annually to financial crimes.
Abbas, who stated, in a keynote address, at the 8th Annual African Network of Parliamentary Budget Offices Conference, on Monday,in Abuja, said Africa collectively loses over $587 billion annually owing to corruption, illicit financial flows, and inefficiencies.
Consequently, he noted that it is imperative to strengthen fiscal oversight by parliaments, in the continent , to safeguard public resources.
Abbas said: “African countries collectively lose staggering sums that never find their way into development programs. According to the African Development Bank, Africa loses over $587 billion annually to capital flight – money that flees the continent through corruption, illicit trade, mispricing, and profit shifting by multinational corporations, among other channels.
“Corruption alone is estimated to drain about $148 billion from Africa annually, and other illicit financial flows (such as trade malpractices, smuggling, among others) siphon away additional tens of billions. This is money that should be used to build roads in Lagos, equip hospitals in Nairobi, or improve schools in Accra, but instead it vanishes.
“Nigeria presents a cautionary example of both the challenge and urgency of oversight. In our public procurement processes, which make up a significant part of government spending, Nigeria loses an estimated $18 billion each year to financial crimes, roughly 3.8% of our GDP. These leaks could fund numerous social programmes many times over. ”
Furthermore, Abbas, said that the House is in support of President Bola Tinubu’s borrowing plans, as they are vital measures for financing critical infrastructure.
The speaker, who noted that the parliament supports responsible borrowing, geared towards addressing the country developmental challenges, explained that Nigeria sometimes needs to leverage on loans to fund critical infrastructure and stimulate economic growth.
According to him, “Recently, a speech delivered by the House leader at the West Africa Parliamentary Conference was horrendously and mischievously reported out of context, creating the false impression that the House of Representatives does not support the borrowing strategy of President Tinubu administration. We should state clearly that this interpretation is both inaccurate and misleading.
“The House and indeed the National Assembly have consistently affirmed that in the face of present developmental needs, strategic and responsible borrowing is an essential fiscal tool. Like every modern economy, Nigeria most sometimes liberates credit to finance critical infrastructure. Stimulate growth and protect vulnerable populations.
“What is important and what the President has assured is that all borrowings remain targeted, transparent and sustainable, consistent with Nigeria’s medium term debt strategy and guided by global best practices.
“Under our President’s leadership, borrowed forms are being channeled towards transformative projects that will expand revenue generating capacity, such as power, transport and agriculture, rather than for consumption.
“The House stands firmly behind the President’s vision of using judicial borrowing as a catalyst for growth and poverty reduction, while simultaneously strengthening oversight mechanisms.”
