Analysis

The evolution of IFFs as we understand it is intricately linked to the progress of technology. The case of cloud computing serves as a prime example of how advancements in tech can facilitate the growth of IFFs. The nexus between cloud computing and IFFs through transfer pricing presently remains an elusive subject due to a lack of substantiating data. This gap in data can be attributed to several factors: the opacity and complexity inherent in cloud computing transactions that span multiple jurisdictions; the intricate corporate strategies surrounding transfer pricing that are typically shrouded in confidentiality; and the swift pace of technological advancement that often outpaces regulatory oversight and data collection methods. Furthermore, stringent privacy laws protect corporate financial information, and the lack of a standardised global reporting framework complicates the task of monitoring and comparing financial flows.

Focusing on limiting IFF is a much better option for providing African countries with the necessary funds towards achieving Agenda 2063 and the United Nations Sustainable Development Goals. Realizing tax revenue from reducing IFFs may also reduce dependence on foreign aid. As African countries take the required steps to curb IFF, it is relevant to note that no single country can independently curb Illicit financial flows, especially from aggressive tax planning. Increasing financial transparency through consistent domestic policy implementation and international cooperation remains one of the most efficient channels to halt IFFs out of Africa.

Africa is unquestionably confronted with substantial development financing needs, which are further exacerbated by two independent, yet interrelated problems that are depleting the already scarce resources: illicit financial flows (IFFs) and a growing burden of unsustainable debt. To effectively tackle the complex challenges of Africa’s development; including achieving the SDGs, combating the effects of climate change, and resolving human rights issues; it is imperative to address IFF by promoting tax justice and to confront unsustainable debt through debt justice. Given the importance of establishing this link, this blog post delves into the challenges and nexus between IFF and unsustainable debt and provides high level policy recommendations.

In the last decade, there have been seven major leaks of financial documents in tax havens which have exposed the international web of financial flows, mechanisms to facilitate these flows and the major role players in these activities. In each leak, questions often arise on how both legal loopholes and illicit means are used to facilitate the outflow of funds from low- and middle-income countries to tax havens by corporations, wealthy individuals, and politically exposed persons (PEPs). These leaks are often the result of whistleblower-led investigations and the release of these financial documents has become a primary resource in understanding how financial corruption works globally. The effects of these leaks have seen heads of government sacked or resigned in some cases while little to no action takes place in other countries. However, what is undeniable is the role of whistleblowers is increasingly becoming central to curbing illicit financial flows (IFFs) especially as the global digital economy and stronger privacy-enhancing technologies make the detection of IFFs harder. Within Africa, very few countries have comprehensive national laws for whistleblowers despite the majority ratifying international agreements for the protection of whistleblowers. Using Nigeria, Kenya, and South Africa as case studies, this note reviews the regulatory landscape in the countries and the extent to which current laws and practices aid or hinder whistleblowing on IFFs.

There is no gainsaying the fact that Illicit Financial Flows (IFFs) constitute a major impediment to Africa’s sustainable development. In fact, IFFs have a direct impact on a country’s ability to raise, retain and mobilise its own resources to finance sustainable development. Its negative impact further includes draining a country’s foreign exchange reserves, reducing domestic resource mobilization, preventing the flow of benefits of foreign direct investment, and worsening insecurity, poverty and economic inequality.

Contributors to the symposium offer unique perspectives and draw on different theoretical and methodological approaches to the practice and scholarship related to IFFs in African states and beyond. Several themes were addressed by the contributors, including tax justice, technology, corruption, accountability, political will, repatriation, recovery of Assets, migration, whistleblowing, international investment, and real estate.

This review focuses on Chapters 1 and 7 of the book ‘Witness Protection and Criminal Justice in Africa: Nigeria in International Perspective’ by Suzzie Onyeka Oyakhire. The review reflects on specific aspects adopted in discussing witness protection and the complexities surrounding its practice in the Nigerian context as presented by the author.

Witness Protection and Criminal Justice in Africa: Nigeria in International Perspective’, by Dr Suzzie Onyeka Oyakhire, provides an important contribution to the processes aiming to establish witness protection concepts, legislation, and requisite structures for the Nigerian criminal justice system. As Oyakhire points out the challenges in institutionalising witness protection in Nigeria are abundant. For this reason, solid academic research such as her book, will be essential in assisting law makers in drafting a law that on one hand appropriately regulates how witness protection is applied at different stages of proceedings within the specific Nigerian legal, socio-economical, and cultural context and consciously considers what benefit international and national practices and standards could provide to the process on the other. Oyakhire’s caution against applying a ‘one size fits all approach’ and recommendation to be aware of the risk of importing ideas from abroad without due consideration to the national context is highly relevant. This is essential in trying to ensure that whatever system Nigerian authorities decide to implement, it must first and foremost be appropriately adopted to respond to national needs. Some principles for practical implementation of witness protection measures, such as how to mitigate risks through prevention, deterrence, and avoidance, will be similar regardless of the geographical location but finding the appropriate solution to these practical challenges will need to have a local flavour.

How does the state provide effective witness protection where the witness-protection architecture is almost non-existent? How is effective protection of witnesses achieved when suspected criminals are in charge of security? How can witness protection programs be made effective without a comprehensive legal and policy framework? In contexts where potential witnesses and suspected criminals live communally and are known to each other, what does effective witness protection look like? Suzzie Onyeka Oyakhire’s new book titled Witness Protection and Criminal Justice in Africa: Nigeria in International Perspective’ used the context of Nigeria to navigate the challenges of witness protection paused by the questions above. These challenges are marked with ambiguity about the precise meaning of witness protection as different domestic and international jurisdictions accord different meanings and therefore interpretations to the concept, though with an ultimate goal of supporting the adjudication of crimes.

In Nigeria, the relevance of witness protection as a critical aspect of criminal justice administration is increasingly becoming evident. Recent developments in Nigeria such as the prosecution of Boko Haram members for terrorism, prosecution of former government officials and high profile individuals for economic and financial crimes as well as Nnamdi Kanu for treason, brought to the fore the need to clarify the legal and conceptual issues that underlie the framework for protecting witnesses. The concept of witness protection is characterised by ambiguity about its precise meaning, thereby subjecting it to different interpretations. Using the Nigerian case study, my book illustrates the obscurities inherent in the concept of witness protection. These obscurities are discussed around five critical themes: the definition of witness protection; the scope of beneficiaries requiring protection; the nature of crimes necessitating protection; the nature of protective measures and the administrative control of witness protection. The book thus explored the concept of witness protection which is still at an early developmental stage in Nigeria. The book draws from international debates, legal developments, and institutional practices from other jurisdictions as a basis for developing Nigerian efforts in witness protection. It adopts two distinct perspectives: the criminal justice perspectives and human rights perspectives as heuristic tools for analysing the concept and to separate the disparate influences that shape how witness protection is construed. These distinctions are utilised throughout the book as an integrated way of conceptualising the concept of witness protection.