Nigeria's EFCC Turns to Blockchain and AI to Combat Capital Flight
Nigeria's Economic and Financial Crimes Commission (EFCC) is exploring a novel approach to combat capital flight, a significant issue in Africa. Olanipekun Olukoyede, the commission's head, has suggested harnessing blockchain and artificial intelligence (AI) to tackle this problem, which sees $88.6 billion leaving the continent illegally each year.
Capital flight, driven by corporate tax evasion, kleptocracy, and profit securing by wealthy individuals, leaves a trail that can be efficiently tracked using blockchain analysis, with or without AI. This method is more effective than traditional means, as demonstrated by the potential to hinder criminal activities and retrieve illegally sent funds.
Olukoyede's proposal involves using blockchain technologies and stablecoins like Bitcoin, Tether, DAI, or USDC. These digital currencies, combined with blockchain analysis, could help trace funds ending up in foreign bank accounts, predominantly in locations such as Switzerland, the Bahamas, and Dubai.
The integration of blockchain and AI in combating capital flight could significantly improve transparency and recovery of illegally sent funds. Olukoyede's suggestion, if implemented, could potentially stem the $88.6 billion annual outflow from Africa and strengthen the continent's financial integrity.
