IMF Warns Nigeria, Emerging Economies to Tackle Illicit Financial Flows Threatening Global Stability
The International Monetary Fund (IMF) has urged Nigeria and other emerging economies to intensify efforts against illicit financial flows (IFFs), warning that the unchecked movement of dirty money poses a serious threat to financial stability, governance, and international credibility.
The warning was issued by IMF Managing Director, Kristalina Georgieva, during a Civil Society Town Hall held at the IMF–World Bank Annual Meetings in Washington, D.C., on Monday.
Georgieva emphasized that tackling money laundering and financial crimes is crucial for countries with fragile institutions and mounting debt challenges. According to her, “Illicit financial flows not only drain public resources but also weaken citizens’ trust in government, distort markets, and scare away genuine investors.”
She noted that many developing economies, particularly in Africa, lose billions of dollars annually through tax evasion, corruption, and cross-border money laundering — funds that could have been used to support education, healthcare, and infrastructure.
“Strong governance, transparency, and effective anti–money-laundering systems are essential for sustaining economic growth and building resilience,” Georgieva said. “Countries must show zero tolerance for financial crimes that undermine development and global stability.”
The IMF chief also highlighted the importance of collaboration between governments, financial institutions, and civil society organizations in closing loopholes that enable illicit flows, stressing that technology and data sharing can play a vital role in detecting and preventing suspicious transactions.
Nigeria has faced persistent criticism from international organizations over weak enforcement of anti-corruption and financial monitoring laws. Despite recent reforms and the establishment of specialized agencies, experts say the country still struggles with massive capital flight and hidden offshore assets linked to political and corporate elites.
Analysts believe the IMF’s latest warning signals growing global pressure on countries like Nigeria to tighten compliance standards, enhance transparency in public finance, and strengthen the independence of anti-graft institutions.
As the IMF and World Bank meetings continue in Washington, discussions on improving governance, debt sustainability, and financial accountability are expected to remain at the forefront of the agenda.