President Muhamnadu Buhari was in Paris, France between Sunday, November 11 and Tuesday, November 13, 2018 for the first edition of the Paris Peace Forum.
The Nigerian leader spoke on Monday, 12th November 2018 on “Illicit financial flows (IFFs) and corruption: the challenge of global governance.”
Here is the full text of the President’s speech:
I am delighted to be part of the inaugural edition of the Paris Peace
Forum and would like to commend the Government of France for this
laudable initiative.
We also thank France for inviting Nigeria to participate in the forum
on the sidelines of the Centenary Celebration of the Armistice. It is
important to recall that although Nigeria was not independent at the
time, the fact remains that it had participated in the war efforts.
3. Nigeria contributed a company of riflemen and support services to the war under the Royal West African Frontier Forces.
4. I should like on this Remembrance Day, to pay tribute to the
sacrifice and bravery of all those who had fallen in battle and the pain
and suffering of those they left behind.
5. More than half a million Africans fought in the trenches of the
First World War for France alone. There was bitter fighting also in east
and southern Africa and around Cameroon and Nigeria. We shall not
forget.
6. I believe this Forum would provide the needed opportunity for
knowledgeable exchange and sharing of best practices on the challenges
militating against the much needed good governance in many countries of
the world. It is on this premise that my presentation will dwell on
“Illicit Financial Flows And Corruption: The Challenge of Global
Governance”.
Distinguished Participants,
7. The cancerous effects of Illicit Financial Flows and corruption on
the socio-economic development of countries are glaringly evident. The
negative impact and ramifications of Illicit Financial Flows are
many-sided.
The list which is long and ever-growing, includes:
a. Draining of foreign exchange reserves;
b. Reduction of tax/revenue collection;
c. Poor investment inflows due to near absence of credibility, transparency and policy stability.
8. Illicit financial flows escalate poverty by denying the citizens the benefit of the resources meant for development.
9. This is a crime of opportunity which thrives most in permissive
environments. Such outflows further undermine the rule of law, stifle
trade and worsen macro-economic conditions.
10. These reprehensible acts are being perpetrated by several
international tax havens and secret jurisdictions, which facilitate the
operation of:
a. Disguised corporations;
b. Anonymous trust accounts;
c. Fake charitable foundations;
d. Money laundering and transfer pricing mechanisms.
11. Indeed, Illicit Financial Flows have exacerbated poverty and
inequality in many societies of the world. Thus, concerted and
multi-jurisdictional efforts must be deployed to frontally tackle the
menace.
12. Combating corruption has been a defining feature of our
Government. Upon assuming office on 29th May, 2015, we made fighting
corruption one of the three pillars of our Administration’s priority
programmes, given the fact that corruption was threatening the very
foundation of our national life, socio-economic development, security
and even the consolidation of our democracy.
13. We continue to demonstrate zero tolerance for corrupt practices
and non-conformity conduct in public life, by confronting corruption
head-on. This is predicated on the fact that we remain steadfast in our
commitment of ensuring integrity and ethical conduct in the task of
governance. We are mindful of the primacy of leadership by example in
this regard.
14. Our efforts at fighting corruption are firmly within the limits
of the rule of law, in spite of the interest-forcing strategies of those
who chose to discountenance the fundamental value of compliance with
the laws of the land.
15. With the progress we have made, we feel the need to ensure that
we put enduring institutional frameworks in place for action and
measures that will consolidate our achievements in the fight against
Illicit Financial Flows and corruption.
16. In the circumstances, strengthening the institutional capacity of
anti-corruption bodies has been accorded due attention. For us,
therefore, effective institutions and political will are strong
counter-measures against corruption and Illicit Financial Flows.
17. In addition, we introduced the Whistle-Blowing policy, whereby
information on the violation of financial regulations, mismanagement of
public funds and assets, financial malpractices or fraud as well as
theft can be reported to authorities.
18. This policy is geared towards ensuring public accountability and
transparency, and it has yielded dividends, as we have recovered
billions of Naira from corrupt persons and companies.
19. We have also redirected recovered funds to the development of
critical infrastructure and programmes that will benefit our people.
Funds and assets recovered through our actions, will be deployed in
delivering the Sustainable Development Goals (SDGs).
20. At the continental level, the African Union also launched the war
against corruption and bestowed on me the honour to champion the cause.
In this connection, our priorities for international cooperation as a
continent will focus on the following:
a. Strengthening international cooperation on asset tracing, recovery and repatriation;
b. Enhancing cooperation between the African Union and the United
Nations’ anti-corruption monitoring mechanisms through stronger
engagement; and
c. Widening the understanding and relevance of anti-corruption
efforts towards the realization of Agenda 2063 and the Sustainable
Development Goals.
21. Appropriate legislation and policies which promote transparent financial transactions should be encouraged.
22. In addition, regulatory institutions and agencies should be
strengthened to fight corruption. Nigeria has a good example in this
regard with the Tax Appeal Tribunal inaugurated recently. The Tribunal
arbitrates between tax payers and government in order to ensure equity
and fairness in tax administration.
23. In accordance with relevant international statutes, asset return
is unconditional. It is a commitment which members of the international
community must abide by.
24. Nigeria, therefore, reiterates its commitment to all existing
international legal frameworks to enforce anti-corruption measures,
including the recovery and return of stolen assets.
Distinguished Participants,
25. While acknowledging the tremendous progress that has been
achieved through the enactment of global instruments, some fundamental
technical issues remain unresolved.
26. These revolve around the formulation of policy and regulatory
frameworks that cut across different jurisdictions. We must not lose
sight of the role played by secret companies, banks and law firms, all
too often based in developed economies and their related offshore
centres.
27. Recent studies reveal that flaws in the global financial system
enable corrupt individuals to hide details of their financial dealings
under the noses of governments and law enforcement agencies. This
underscores the need to urgently address the issue of Mutual Legal
Assistance, as well as continental legal frameworks, in the context of
safe havens for illicit transfers.
Distinguished Participants,
28. Our experience in Nigeria is that financial crimes, such as
corruption and fraudulent activities, generate enormous unlawful profits
which often prove so lucrative that the threat of a jail term is not
sufficient to deter perpetrators.
29. A more powerful deterrent is to ensure that profits and assets
generated from illicit financial flows and corruption are recovered and
returned to countries of origin.
30. This is not to under-estimate the value of strong institutions.
It only indicates that asset recovery represents significant deterrence
compared to the traditional focus on obtaining conviction by the law
enforcement agencies of the countries of origin.
Distinguished Participants,
31. As we take stock of the strengths and weaknesses of domestic,
regional and international mechanisms against Illicit Financial Flows, I
seize this opportunity to recall the Global Declaration Against
Corruption made in London in 2016 and our commitment thereto.
32. Among other things, the Declaration encapsulates our collective
commitment to the principles of Open Government Partnership, especially
the National Action Plans to actualize beneficial ownership
transparency, enhance the capacity of Financial Intelligence Units
(FIUs), reinforce Independent Reporting Mechanisms and support the
activities of the Global Forum on Transparency and Exchange of
Information for Tax Purposes. We should remain resolute in our
commitment to the aforementioned goals.
33. Similarly, we must crack down on safe havens for corrupt assets. I
also advocate sanctions by professional bodies against transactional
middlemen (lawyers, bankers, brokers, public officials, etc.) who
facilitate Illicit Financial Flows.
34. I would like to reiterate that the Government of Nigeria remains
open and is ever willing to continue to identify and share experiences
and strategies to give life to the ideas that will lead to winning the
fight against corruption.
Esteemed Ladies and Gentlemen,
35. Finally, let me reiterate the importance of unity and collective
action. It is only together that we stand a better chance to win the
fight against the menace of Illicit Financial Flows and corruption.
I thank you for your patience and attention.
