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‘Africa Loses $50bn Yearly To Illegal Financial Outflow’

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The former South African
President, Mr Thabo Mbeki last Wednesday said the African continent lost about 50 billion dollars through illegal financial outflow of funds from the continent.
Mbeki said this at a High Level meeting on “Tackling Illicit Financial Flows and Inequality in Africa”, on the sideline of the World Economic Forum (WEF) on Africa in Abuja.
According to him, the main channel through which money is being syphoned out of Africa, is through the commercial companies operating in the continent.
“Annually, the continent is thought to lose about 50 billion dollars.
“This is about the same amount the continent receives in terms of annual foreign direct investments.
“While it is often assumed that these outflows are linked to practises such as bribery, corruption or money laundering, studies have shown that it is not criminal activities but tax evasion that is responsible.
“Commercial tax evasion most commonly takes the form of trade wrong pricing, which means a company manipulates the exports and imports to artificially depress profits and dodge tax,’’ he said.
Mbeki said that tax havens, trade pricing and miss-invoicing were other strategies through which the continent loses money.
“I have visited many African countries to see how this is being handled. Some of them already have institutions in place to tackle this.
“However, they are not doing a great job. There is no cooperation but only disconnect.
“So, it is necessary for legislation to be put in place to deal with these illicit financial outflows, while the global community is also important to solving this.
“This is why we have interacted with the U.S., the IMF and other organisations to see what they can do and what they are already doing to solve this problem,’’ he said.
Mbeki expressed hope that when all these foreign institutions worked together, along with governments of different states and civil societies on the continent, “it is  possible to recover and stop these illegal outflows’’.
Also speaking, Miss Winnie Byanyima, the Executive Director, Oxfam International, a non-profit organisation, decried the level of poverty recorded on the continent, in spite of all its economic development.
“How can it be that only a few are rich despite the economic development in the continent.
“More than 80 per cent of its population is still leaving on less than one dollar a day, which is disheartening.
“I believe that when Africa’s growth translate to health and free social services for the poor, inclusive growth will be achieved,’’ she said.
Byanyima said that when Africa reduced its current level of raw material exportation to other continent, and focused on industrialisation, inequality would be reduced.
According to her, this will also translate to creation of more jobs for the youths on the continent.
Meanwhile, Guinea’s Minister of State for Mines and Geology, Mr Kerfalla Yansane, said Africa needed to take proper account of its natural resources.
“Proper records on the mining of natural resources are not kept.
“ There is also no knowledge of how most private companies are run, which has resulted in most of them having offshore accounts to cheat government of tax,’’ Yansane said.
Mr Abdalla Hamdok, the Deputy Executive Secretary, UN Economic Commission for Africa said that the 50 billion dollars alleged to be missing yearly from the continent was a conservative figure.
Hamdok said that the real amount missing was enough to increase Africa’s Gross Domestic Product by 16 per cent, increase its savings and address all its infrastructure problems.
The Chief Executive Officer, The Mara Group, Africa, Mr Ashish Thakkar, talking on behalf of the private sectors, said responsible investors were needed on the continent.
“There is need for companies to stop influencing contracts and promoting corruption in Africa. They can do the right thing and do well,’’ he said.
The Executive Director, Tax Justice Network, Africa, Mr Alvin Mosioma, said that the civil societies could only raise awareness on societal ills but that the political leaders on the continent held the key to its solution.

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NPA Assures On Staff Welfare 

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The Managing Director, Nigerian Ports Authority (NPA), Dr. Abubakar Dantsoho, has said the management will continue to accompany its port infrastructure  and equipment  modernization drive  with the development of the welfare of its personnel.
Dantsoho made the disclosure recently while responding to the commendation by the Maritime Workers Union (MWUN) and the senior Staff Association of Statutory Corporations and Government-Owned Companies (SSASGOC) on the  clearing  of the age-long problem of employee stagnation, when the union paid him a courtesy visit at the Authority’s headquarters in Lagos.
A Statement by NPA’s General Manager Corporate & Strategic Communications, Mr. Ikechukwu Onyemekara, quoted Dantsoho as saying,  “our Port infrastructure and equipment modernization drive will go hand-in-hand with continuous staff welfare improvement”.
The NPA MD disclosed that human capital development constitutes the key strategy for creating and sustaining superior performance under his watch, adding that “talent development constitutes a critical success factor for the actualization of the big hairy audacious goals we have set for ourselves especially in the area of Port competitiveness.
“The only way we can meet and indeed exceed stakeholders’ expectations is to deepen the competencies of our human resources assets and boosting their morale.”
Speaking further, Dantsoho commended the Honourable Minister of Marine & Blue Economy, Adegboyega Oyetola, for approving the strategic proposal of the Dantsoho-led Management team that solved the over a decade-long problem of lack of promotion that had fuelled industrial disharmony.
“I must specially appreciate our amiable Minister for graciously approving the multi-pronged stratagem we deployed that cleared all outstanding cases of employee stagnation by conducting examinations in one fell swoop and instituted timelines to forestall a recurrence of such anomaly”, he sad.
Speaking on behalf of the joint maritime labour unions, the President  of Senior Staff Association of Statutory Corporations & Government-Owned Companies (SSASCGOC), Comrade Bodunde stated, “In addition to clearance of the backlog of stagnated promotions, we also wish to express our appreciation for the increase in productivity bonuses, provision of end-of-year welfare packages for staff, and the revision of the Financial Guide to the Condition of Service, which now addresses our members’ concerns about inflationary pressures.”
Nkpemenyie Mcdominic, Lagos
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ANLCA Chieftain Emerges FELCBA’s VP

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National Secretary of the Association of Nigerian Licensed Customs Agents (ANLCA), Elder Olumide Fakanlu, has been elected Vice President of the Federation of ECOWAS Licensed Customs Brokers Association (FELCBA).
The election took place during the FELCBA Congress, held from Tuesday, June 17th to Thursday, June 19th, 2025, in Freetown, Sierra Leone.
Fakanlu’s emergence as Vice President marks a significant achievement for Nigeria within the regional customs brokerage community.
Apart from Fakanlu, Secretary of the Seme Chapter of ANLCA, Austin Nwosu, was also elected, securing the role of Secretary of Relations with Institutions.
The Nigerian delegation played an active role in the congress, with Michael Ebeatu nominated as a member of the electoral officer team, ensuring a fair and transparent election process.
The three-day congress concluded with delegates undertaking a visit to the Sierra Leone Port, offering insights into the host nation’s maritime operations, followed by a recreational trip to the Tokeh Beach.
The newly elected executives are expected to lead FELCBA in its efforts to harmonize customs brokerage practices, promote trade facilitation, and advocate for the interests of licensed customs brokers across the ECOWAS sub-region.
Nkpemenyie Mcdominic, Lagos
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NSC, Police Boost Partnership On Port Enforcement 

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In a bid to enhance more enforcement in the nation’s Port, the Nigerian Shippers’ Council (NSC) has reaffirmed its commitment to stronger inter-agency collaboration with the Nigeria Police Force (NPF).
The Council said the collaboration is aimed at enhancing stronger enforcement, compliance and improve operational efficiency across Nigeria’s ports.
Executive Secretary/Chief Executive Officer of  NSC, Dr. Pius Akutah, made this known during a visit to the  Inspector-General of Police, Dr. Kayode Adeolu Egbetokun, at the Force Headquarters, Abuja.
The visit, which he said, focused on strengthening institutional synergy, comes in the wake of growing responsibilities for the NSC under the newly created Ministry of Marine and Blue Economy.
Akutah emphasized the critical role of security agencies in supporting port operations and ensuring regulatory compliance.
He called for the posting of police officers to assist the Council’s monitoring and enforcement teams at key port locations including Lagos, Warri, Onne, Port Harcourt, and Calabar.
“The posting will complement the activities of our revived task teams and enhance our ability to enforce standards across the maritime logistics chain”, he said.
Earlier, the Inspector-General of Police, Dr. Egbetokun, assured the Council of the Force’s readiness to continue supporting the growth of the maritime sector.
The IGP acknowledged that compliance enforcement is essential to the successful implementation of Nigeria’s Blue Economy objectives.
“The NSC and NPF are expected to deepen collaboration in the months ahead, with a shared focus on building a secure, efficient, and competitive port environment”, to the IGP emphasized.
Chinedu Wosu
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