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NLC Pushes Reforms to Curb Illicit Financial Flows, Corruption in Nigeria

By Michael Oche

The Nigeria Labour Congress (NLC), with support from the Solidarity Center, has intensified calls for sweeping reforms to curb illicit financial flows (IFFs) and dismantle entrenched kleptocratic systems undermining Nigeria’s development.

The labour body raised concerns on Thursday in Abuja at the opening of a two-day validation workshop on strengthening trade union and civil society coalitions to combat kleptocracy and illicit financial flows.

The event brought together stakeholders from trade unions, civil society organisations and the media to chart a coordinated response to what organisers described as a deepening crisis of corruption and governance failure.

Speaking at the workshop, NLC General Secretary, Comrade Emmanuel Ugboaja, said there is need to consolidate strategies, and forge stronger alliances between labour unions and civil society organizations in the ongoing fight against corruption and the systemic looting of public resources that undermine the welfare of Nigerian workers and citizens.

“We are not here to merely discuss problems and produce another communique for the shelves. We are here because we are at war. Our people must win and Nigeria must win,” he said.

Represented by the NLC Assistant Secretary-General, Comrade Onyeka Chris, Ugboaja said recent labour-backed findings indicate that corruption in Nigeria has evolved from isolated incidents into a systemic crisis.

“We are confronting a system of kleptocracy, where the state itself has been captured and weaponised by a parasitic elite,” he said.

“They govern for their own gain, treating the treasury as their private account and the nation’s resources as their inheritance,” he added.

He stressed that illicit financial flows and corruption continue to drain critical resources needed for national development, with far-reaching consequences across key sectors.

“Every dollar stolen is a wage unpaid, a hospital unbuilt, a school left to crumble. Illicit financial flows are nothing but illicit job flows,” he added.

Ugboaja identified procurement fraud, capital flight, and weak regulatory frameworks as major drivers of financial leakages, noting that public contracts are often inflated by as much as 200 to 300 per cent.

He further decried weak rule of law and compromised institutions, which he said have created a culture of impunity.

“We see a system that punishes the poor and protects the powerful. Politically exposed persons evade justice, while low-level offenders are prosecuted,” he said, criticising what he described as selective enforcement of anti-corruption laws.

The NLC leader argued that existing anti-corruption mechanisms have failed due to lack of institutional independence, insisting that meaningful reforms must come from outside the current state structure.

“The state apparatus, as presently constituted, will not fix itself. Its independence is a fiction, and its reforms are often just new masks for the same old system of looting,” he said.

Ugboaja emphasised the need for a strong alliance between organised labour and civil society to drive accountability, noting that the workshop marks a step towards building a unified coalition with clear strategies and responsibilities.

Among the key demands outlined were the enforcement of beneficial ownership transparency, strengthened whistleblower protection laws, judicial reforms, an end to impunity, and the repatriation and transparent management of stolen assets.

Also speaking, the Deputy Regional Director for Africa at the Solidarity Center, Margie Peters, warned that illicit financial flows pose a broader threat beyond economic losses.

“Illicit financial flows rob citizens of access to essential services and erode trust in public institutions. They pose a direct threat not only to economic stability but also to democracy and social development,” she said.

Peters underscored the importance of empowering workers and civil society groups as key actors in reversing the trend.

Similarly, NLC Focal Person on Tax Justice, James Eustace, said civil society organisations are ramping up advocacy efforts to promote fiscal transparency and accountability.

“We are pushing for reforms aimed at curbing illicit financial flows and promoting equitable economic policies. Transparency and accountability in tax systems and financial regulations are critical to this effort,” he said.

Eustace highlighted several challenges fueling illicit financial flows and kleptocracy, including weak enforcement mechanisms, political interference, inadequate whistleblower protection, public distrust, fragmented advocacy, and funding constraints.

Participants at the workshop echoed the view that government-led anti-corruption efforts alone are insufficient, calling for urgent and comprehensive reforms to strengthen institutions, protect whistleblowers, ensure judicial independence, and guarantee transparency in the utilisation of recovered assets.

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