Over half of Africa’s capital flight exits the continent via its oil rich nations – that’s according to the Tax Justice Network.
The worst offenders are foreign multinationals. They use numerous methods, including tax havens, transfer pricing (when one division of a company charges another division different prices), profit repatriation, tax avoidance and trade mis-invoicing (under-invoicing of exports and over-invoicing of imports).
According to data from UNCTAD, the problem is especially bad in Nigeria, with billion leaving annually – billions that could have been invested into the country’s economic development. This week’s Facts of the Week explore how key sectors of Nigeria’s economy are being used to funnel wealth out of the country.
