Nigeria’s Vice President, Professor Yemi Osinbajo, has blamed the difficulty in retrieving funds looted from the country on the international financial system.
Professor Osinbajo was speaking on Thursday at the Organisation for Economic Cooperation and Development (OECD) forum in Paris, France.
In a statement, the Vice President pointed out that illicit financial flows must be regarded as corrupt activity.
He acknowledged that the tracing, freezing and return of stolen assets have proved exceptionally difficult for most African countries.
“Countries hosting global financial centres, and other usually targeted destinations of illicit flows must be held more accountable to enforce mechanisms which ensure transparency of ownership, control, beneficial ownership, trusts and other legal contrivances that may be used to camouflage financial or other assets,” Professor Osinbajo said.
He insisted that member-countries must work collaboratively to ensure transparency in financial transfers, and outlaw secrecy jurisdictions, in addition to more rigorous enforcement of rules promoting transparency in the international banking and financial system.
A former IMF First Deputy Managing Director, John Lipsky, has said that the world’s financial system is not yet performing adequately, especially in the Euro Zone.
He said this on the sidelines of the annual World Economic Forum (WEF) in Davos on Wednesday.
Lipsky, a Senior Fellow, Foreign Policy Institute at Johns Hopkins School of Advanced International Studies, told Reuters Television, “Six years after the beginning of the Greek financial crisis, the world’s financial system is not yet back in the shape it needs to be in.”
According to Lipsky, “the recapitalisation and cleaning the bank balance sheet remains incomplete and more action is needed.
“That’s one of the key issues or one of the key tasks in the Euro Zone for 2014,” Lipsky added.
He explained “There is no clear recipe or easy answer to say, how do we get back to the kind of performance that we think that is both desirable and achievable, especially in the largest economies.
“This, I’m sure will be discussed extensively here”, he added.
Speaking on the finicial crises rocking the Nigerian aviation industry, an aviation expert, Mr Chris Aligbe, has declared that commercial banks in the country, see the aviation sector as every other business and therefore treat it as such due to their lack of competence in aviation.
This according to Mr Aligbe, who was a guest on Sunrise Daily, has led to the inability of the fiancial institutions to analyse proposals from the aviation sector, as he further allege that the banks also fail to engage aviation consultants to analyse or interpret the proposal as the case may be. This he argues has led to the faltering of the very essential sector of the Nigerian economy.
The aviation expert also noted that the Central Bank of Nigeria (CBN) has no responsibility for the aviation sector in any way as the apex bank has the sole responsibility of regulating the financial system of the country, this he argues is not in any way related to the aviation sector.
On the intervention fund provided for the sector by the CBN, Mr. Chris explained that the move by the CBN is of good intentions as it remains within the ambits of its primary duty but he recalled that most business relationship between the banks and the aviation sector doesn’t end well.