Nigerian Watchdog Calls for Blockchain, AI to Combat Financial Crimes

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Nigerian Watchdog Calls for Blockchain, AI to Combat Financial Crimes

YEREVAN (CoinChapter.com) — The chairman of the Nigerian Economic and Financial Crimes Commission, Olanipekun Olukoyede, highlighted the $88.6 billion lost annually to illicit financial flows (IFFs) in Africa. Speaking at the Pan-African Conference on Illicit Financial Flows and Taxation, Olukoyede emphasized the potential of blockchain technology and artificial intelligence (AI) to curb these losses.

The conference, a key forum of the African Union, gathers stakeholders across Africa to tackle IFFs and taxation issues. Olukoyede stressed the importance of robust legal frameworks and capacity building at national, regional, and international levels. He advocated for using technologies like data analytics, blockchain, and AI to enhance asset tracking and recovery efforts.

Recovered Funds Could Transform Infrastructure and Healthcare in Africa

Olukoyede noted that recovering lost funds could significantly improve infrastructure, healthcare, and education across the continent. He cited the successful repatriation of $311 million from the United States in 2020, linked to former Nigerian dictator Sani Abacha, as an example of effective international cooperation.

The chairman emphasized that effective anti-corruption efforts require strong international pressure to ensure cooperation from tax havens and low-tax jurisdictions. This highlights the need for sustained advocacy and coordinated efforts to tackle IFFs.

EFCC Chairman Addresses Pan-African Conference on Illicit Financial Flows Source: Union Africaine Conference — EFCC Chairman Addresses Pan-African Conference on Illicit Financial Flows. Source: Union Africaine Conference

Nigeria Boosts Security with Blockchain and AI Initiatives

Nigeria is actively using blockchain technology to fight financial crimes. In May, the National Information Technology Development Agency (NITDA) restructured the National Blockchain Policy Steering Committee (NBPSC). This move aims to reassess policies guiding the implementation of the country’s National Blockchain Policy.

In April, NITDA advocated incorporating AI into the Nigerian security framework. The agency’s Director General, Kashifu Inuwa, highlighted how the security and IT sectors can use AI and the Internet of Things (IoT) to improve security measures.

NITDA is promoting AI growth through initiatives like the National Centre for Artificial Intelligence and Robotics and developing a National Artificial Intelligence Policy.