Request for Applications (RFA) – Research on the Enablers of IFFs in the Extractive Sector
Background
Nigeria is a leading resource-rich country, but a large proportion of the revenue generated from the extractive industries is illegally earned and transferred to become Illicit Financial Flows. The Global Journal of Human Social Science cited a World Bank report published since 2017, which identified the extractive sector as a major enabler of IFF in Nigeria and has become a barrier to economic development, as substantial resources that would otherwise be used for national development are diverted through corrupt means. The Anti-Corruption Resource Centre listed several factors that make extractive sectors prone to illicit financial flows. Some of the factors reflect the high-level discretionary political control in the sector, the frequent blurring of public, shareholders, and personal interests in the sector, limited competition and the complex technical and financial processes that require a high degree of expertise, and the high degree of integration into the global economy, through a limited number of channels.
There are several international initiatives and country-specific frameworks that seek to curb IFF. The Extractive Industries Transparency Initiative framework, which focuses on financial flows between companies and governments, is one such framework. Several government institutions, including the Federal Inland Revenue Service and security agencies, are working to address the problem. Despite these institutional arrangements and efforts, IFF persist. ANEEJ has therefore set out to undertake this research on the enablers of IFF in the extractive sector in Nigeria. The study will focus on the mining/solid minerals sector as there has been a large growth in production in this area over recent years, including in high-risk commodities such as gold ( Nigeria – African Gold Report), but there has been limited policy discourse on IFF dimensions.