The International Monetary Fund (IMF) has raised concerns over the surge in illicit financial flows (IFFs) from Nigeria, warning that the trend is deepening the country’s fiscal and revenue crisis.
IMF Managing Director, Ms. Kristalina Georgieva, made the observation during the ongoing 2025 Annual Meetings of the IMF and World Bank in Washington DC, noting that the Fund is intensifying efforts to trace such flows to help countries like Nigeria plug fiscal leakages.
“We believe that for countries like Nigeria, the IMF’s renewed focus on tracing illicit financial flows could provide a blueprint for plugging the fiscal leakages that have long undermined revenue generation and sustainable growth,” Georgieva stated.
She described illicit financial flows as a global economic threat, warning that they continue to erode governance systems, drain public resources, and cripple development efforts — particularly in developing economies.
According to her, the flows include stolen public funds, proceeds of criminal activities, and untraceable digital transactions, all of which undermine financial stability and national welfare.
A recent IMF policy briefing highlighted that IFFs now manifest in “multiple dimensions,” ranging from outright embezzlement of taxpayers’ money to private capital channelled into illegal ventures.
The Fund also noted that the expansion of the digital economy has further complicated the problem, with cryptocurrencies such as Bitcoin offering new avenues for anonymous financial transactions.
Georgieva added:
“You may have money, just plainly stolen money that belongs to taxpayers. You may have private money directed toward criminal activities undermining the welfare of citizens.”
The IMF said its renewed commitment to tracking IFFs would support broader global efforts to promote transparency, accountability, and sustainable public finance in developing countries like Nigeria.
