The International Monetary Fund (IMF) has expressed deep concern over the rising volume of illicit financial flows (IFFs) from Nigeria, warning that the trend is worsening the country’s fiscal and revenue challenges.
Speaking at the 2025 IMF–World Bank Annual Meetings in Washington DC, the Fund’s Managing Director, Ms. Kristalina Georgieva, said the IMF would intensify efforts to trace and curb such illegal outflows, which she described as a major threat to Nigeria’s economic stability and development. “For countries like Nigeria, the IMF’s renewed focus on tracing illicit financial flows could provide a blueprint for plugging the fiscal leakages that have long undermined revenue generation and sustainable growth,” she stated.
Georgieva noted that illicit financial flows — including stolen public funds, criminal proceeds, and untraceable digital transactions — continue to weaken governance systems and drain national resources. She added that the growth of cryptocurrencies and digital assets has further complicated the problem, enabling criminals to move money anonymously across borders.
To combat this, the IMF has strengthened its Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) framework, making financial integrity assessments a key part of its Article IV consultations with member countries. The Fund will also integrate measures against illicit flows into all financial assistance programs, especially where such challenges are systemic.
Beyond enforcement, Georgieva emphasized the need for strong governance and institutional reform. Through its Governance Diagnostics initiative, the IMF is helping countries like Nigeria identify corruption-prone areas and implement preventive reforms. “Curbing illicit flows is not just about financial systems; it’s about governance and accountability,” she said.
Meanwhile, the IMF upgraded Nigeria’s 2025 economic growth forecast to 3.9%, up from 3.4% previously projected, citing stronger oil output, investor confidence, and fiscal reforms. The Fund expects Nigeria’s GDP to grow by 4.2% in 2026 but warned that inflation, though easing, remains a major concern.
IMF officials urged Nigeria to sustain credible monetary policies, enhance transparency, and deepen structural reforms to solidify the country’s economic recovery and reduce its exposure to illicit financial activities.
