$18bn lost annually to illicit financial flows, impedes Nigeria’s devt – CSOs

Civil Society Organizations, CSOs, Tuesday, disclosed that Nigeria’s development is being impeded by the annual loss of $18 billion to illicit financial flows. The CSOs are making a strong case for transformative global reforms and urgent domestic action to address the persistent financing challenges facing the Global South. This call is contained in a newly released report titled ‘Financing for Development in Nigeria: Sectoral Context and Insights for the Fourth International Conference’, an advocacy position paper developed by the Civil Society Legislative Advocacy Centre (CISLAC), in partnership with Oxfam in Nigeria, Christian Aid, International Budget Partnership, Tax Justice & Governance Platform, Connected Development, and other key partners under the Africa Agenda on Financing for Development (Agenda Afrique).
The report presents a sobering analysis of Nigeria’s development trajectory, warning that, “Nigeria faces a multidimensional financing gap, driven by underperforming domestic resource mobilization, inequitable global financial rules, and increasing vulnerability to climate change.” The Executive Director, CISLAC, Auwal Rafsanjani, said, “Nigeria is calling for transformative action to address the urgent financing needs of developing countries. A new document which presents Nigeria’s position on financing for development titled ‘Financing for Development in Nigeria: Sectoral Context and Insights for the Fourth International Conference’ outlines the country’s development financing challenges, sectoral gaps, and policy recommendations to shape Nigeria’s engagement with the global community. “The report reveals that Nigeria faces a multidimensional financing gap, driven by underperforming domestic resource mobilization, inequitable global financial rules, and increasing vulnerability to climate change. Education, health, agriculture, and climate resilience remain critically underfunded, with education spending falling below UNESCO benchmarks and health expenditure still under 4% of GDP. 
“Nigeria’s debt service ratio now exceeds 70% of revenue, while over $18 billion is lost annually to illicit financial flows, further constraining investment in social sectors. The report also emphasizes that without fairer global financial architecture and local development outcomes remain out of reach. But as a nation committed to achieving the aspirations of Agenda 2063 of the African Union, the ECOWAS Vision 2050, and the United Nations Sustainable Development Goals (SDGs). But let me be clear: while these frameworks offer a clear roadmap, Nigeria and many other African nations continues to face serious challenges in mobilizing the resources required to meet its development obligations. There are persistent and widening gaps in Health, Education, Agriculture, Water, and Security sectors that are foundational to any meaningful development agenda. Without decisive and deliberate efforts to bridge these financing gaps both at the national and sub-national levels, we will continue to fall behind. Most Nigerian states do not have active, measurable development blueprints. This makes it difficult to assess progress, correct failures, or attract meaningful investment.
“The government and civil society are jointly urging the international community to prioritize loss and damage financing, equitable access to green investments, and reforms to Special Drawing Rights (SDRs) to support middle-income countries with high poverty burdens.” As the world gears up for FfD4, Nigeria is positioning itself to take a leadership role in shaping the future of global development finance. The report concludes with a call to action: “This moment is pivotal. As the global community gathers to renew its financing commitments, Nigeria stands ready to champion equity, accountability, and inclusion in the international financial system. The upcoming FfD4 conference presents a critical opportunity to reshape global financing and unlock the investments required for a just and resilient future.”