Nigeria lost an estimated $77.7 billion to trade-related illicit financial flows (IFFs) between 2013 and 2022, according to a new report released by Global Financial Integrity (GFI), a United States-based think tank that tracks illicit financial movements, corruption, and money laundering.
The report, titled “Trade-related Illicit Financial Flows in Africa, 2013–2022,” described IFFs as a major obstacle to Africa’s inclusive growth and economic sovereignty. It analysed trade-related value gaps across all Sub-Saharan African countries over the 10-year period.
GFI explained that these illicit flows largely occurred through trade misinvoicing, a practice involving the deliberate under- or overstatement of the value of goods in cross-border transactions to move money illicitly.
Across the continent, South Africa recorded the highest cumulative trade value gaps, estimated at $478.08 billion, representing about 42 per cent of Sub-Saharan Africa’s total trade-related IFFs during the period under review. The report attributed this to the country’s extensive trade in commodities and manufactured goods, which creates opportunities for mispricing.
Nigeria ranked among the countries with the largest losses, alongside Ghana ($54.1 billion), Côte d’Ivoire ($47.7 billion), and Kenya ($47.5 billion). The report noted that although Nigeria’s cumulative figure was lower than South Africa’s, the country remains one of the largest sources of capital flight on the continent, particularly in connection with oil-sector transactions and financial crime.
GFI further observed that Côte d’Ivoire and Ghana’s high figures may be linked to misinvoicing in key export sectors such as cocoa, gold, and oil. Kenya’s significant trade value gap was described as notable given its more diversified economy, with misinvoicing likely occurring in both imports and exports due to its position as a regional trade hub.
Other Sub-Saharan African countries with substantial estimated trade-related IFFs during the period include Zambia ($35.8 billion), Tanzania ($35.5 billion), Angola ($35.4 billion), Senegal ($25.5 billion), and Ethiopia ($24.6 billion).
The report also examined trade value gaps between African countries and advanced economies over the same period. South Africa again led the group, with an estimated $238.4 billion in trade misinvoicing involving developed markets.
Nigeria ranked second in this category, with $29.7 billion in trade value gaps linked to advanced economies, largely tied to crude oil exports to destinations in Europe and North America.
Other African countries with significant trade value gaps with advanced economies include 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 warned that persistent trade-related illicit financial flows continue to drain vital resources from African economies, weakening domestic revenue mobilisation and undermining long-term development efforts.
