TRADE FACILITATION AND ILLICIT FINANCIAL FLOWS FROM NIGERIA

Abstract

From the Nigerian context, illicit financial flows (IFFs) have been found to be an impediment to the enjoyment of trade flows benefits from trade facilitation. These flows are aided by the neglect of the single window policy cum weak regulatory framework. The World Bank (2017) has been assisting developing countries in building capacity in the area of trade facilitation for curbing IFFs. This study therefore seeks to examine the link between trade facilitation and IFFs from Nigeria. The study used time series data from Global Financial Integrity (GFI) and the World Bank. The study used the Pearson Correlation Matrix to analyse the relationship of between trade facilitation and IFFs from Nigeria. Among others, the results from this study reveal that the quality of port infrastructure and third party logistics partially promotes illicit financial outflows from import over-invoicing; the quality of port infrastructure in Nigeria fully promotes illicit financial inflows from both over-invoiced exports and under-invoiced imports; and customs procedures in Nigeria influences illicit financial inflows.