A new report by Global Financial Integrity (GFI), a United States-based think tank, has revealed that Nigeria lost an estimated $77.7 billion to trade-related illicit financial flows (IFFs) between 2013 and 2022, highlighting the scale of financial leakages undermining the nation’s economy.
IFFs refer to cross-border transfers of funds that are illegally earned, moved, or utilized, often involving corruption, tax evasion, smuggling, and falsified trade invoices.
The report, titled “Trade-related Illicit Financial Flows in Africa, 2013–2022,” examined value gaps in trade data across Sub-Saharan African countries and identified widespread mis-invoicing practices — where the value of imports or exports is deliberately understated or overstated — as a major source of financial loss.
According to the findings, South Africa topped the continent with an estimated $478.08 billion in cumulative trade value gaps, representing 42% of Sub-Saharan Africa’s total IFFs during the 10-year period. Nigeria ranked second with $77.7 billion, followed by Ghana ($54.1 billion), Côte d’Ivoire ($47.7 billion), and Kenya ($47.5 billion).
“A second tier of countries have also hemorrhaged significant sums. Nigeria, Ghana, Côte d’Ivoire, and Kenya each accumulated tens of billions of dollars in trade value gaps between 2013 and 2022,” the report stated.
The GFI study further analyzed Africa’s trade gaps with advanced economies, showing that South Africa again led with a $238.4 billion trade value discrepancy, while Nigeria followed with $29.7 billion, largely linked to oil exports to destinations such as the United States and the European Union.
Other countries in the top 10 for trade gaps with developed nations included Côte d’Ivoire ($24.6 billion), Ghana ($20.5 billion), Angola ($19.0 billion), Kenya ($14.2 billion), Madagascar ($11.1 billion), Cameroon ($9.8 billion), Gabon ($9.5 billion), and Senegal ($9.3 billion).
GFI noted that these persistent financial outflows represent a major barrier to Africa’s economic growth, depriving governments of crucial revenue needed for development.
“Every dollar siphoned out of African economies is a dollar not taxed or invested at home,” the report stated. “Tax revenue losses due to IFFs in Africa are estimated at around $17 billion annually, undermining public expenditure and economic resilience.”
The think tank urged African governments to strengthen customs transparency, trade data reconciliation, and cross-border cooperation to curb illicit flows and retain vital resources for infrastructure, education, and healthcare.
