Nigeria's EFCC Chief Proposes Blockchain, AI to Combat $88B Africa Capital Flight
Nigeria's EFCC chairman, Olanipekun Olukoyede, has proposed a novel approach to tackle capital flight in Africa. Speaking at a Pan-African Conference, he suggested harnessing the power of blockchain and AI to combat this pressing issue, which sees $88.6 billion leaving the continent annually.
Capital flight, a significant problem for Africa, sees funds ending up in foreign bank accounts, predominantly in Switzerland, the Bahamas, Dubai, and other locations. Olukoyede's suggestion likely involves using Bitcoin, stablecoins, and blockchain analysis to track these funds efficiently.
Blockchain analysis has proven successful in the past. In 2020, it helped retrieve $311 million from the U.S. that was illegally transferred. If implemented, stablecoins could also help reduce fraud and corruption in financial institutions, a major issue in Nigeria. By increasing transparency in financial transactions, blockchain and AI could make it harder for corporations evading taxes, kleptocrats looting countries, and wealthy individuals to secure profits and move funds illicitly.
Olukoyede's proposal to use blockchain and AI to combat capital flight in Africa is a forward-thinking approach. If successful, it could significantly reduce the $88.6 billion leaving the continent illegally each year, helping to stabilize economies and promote growth.
