STEMMING CAPITAL FLIGHT, TAX EVASION, AND MONEY LAUNDERING IN NIGERIA: THE ROLE OF THE NIGERIAN FINANCIAL INTELLIGENCE UNIT

OKORO, VICTORIA and Ndukwe, O. (2025) STEMMING CAPITAL FLIGHT, TAX EVASION, AND MONEY LAUNDERING IN NIGERIA: THE ROLE OF THE NIGERIAN FINANCIAL INTELLIGENCE UNIT. Figshare. pp. 1-15.

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Abstract

Among what have persistently undermined Nigeria's economic development are illicit financial outflows through capital flight, tax evasion, and money laundering. These issues hamper domestic resource mobilization and erode public trust in financial institutions especially banks. Anchoring on an intergrated theoritical frameworks, this paper explores the role of the Nigerian Financial Intelligence Unit (NFIU) in combating these economic crimes in Nigeria. It assesses the legal framework, operational capacity, achievements, and constraints of the NFIU. Employing a quantitative approach, the study utilizes secondary data from NFIU reports (2020– 2024) and Central Bank of Nigeria financial disclosures. Statistical analysis was conducted to evaluate trends and correlations between NFIU enforcement and illicit activity reduction. Findings from the study reveal that increased Suspicious Transaction Report (STR) filings, realtime monitoring, and policy interventions by the NFIU significantly curtailed money laundering and capital flight activities. Findings from the study reveal that the Nigerian Financial Intelligence Unit plays a vital role in disrupting the financial architecture that enables capital flight, tax evasion, and money laundering—especially within the banking system. The paper while confirming a strong correlation between financial intelligence enforcement and reduction in financial crimes concludes that capital flight, tax evasion, and money laundering practices weaken economic development, reduce government revenue, and undermine financial integrity. The paper recommends among others; strengthening Nigerias Financial Intelligence Unit (NFIU) capacity by enhancing their training, improved interagency collaboration and coordination should; and strenghtening nigeria’s international cooperation by enhancing collaboration with foreign financial intelligence units.

Item Type:	Article
Subjects:	H Social Sciences > HJ Public Finance
Divisions:	Faculty of Management and Social Sciences
Depositing User:	Uchenna Eneogwe
Date Deposited:	26 Aug 2025 10:57
Last Modified:	26 Aug 2025 10:57
URI:	http://eprints.gouni.edu.ng/id/eprint/5288

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