Reported by: Ijeoma G | Edited by: Gabriel Osa
LAGOS, Nigeria — West Africa’s largely informal, cash‑based economy is significantly fuelling human trafficking and related organised crime across the region, the Inter‑Governmental Action Group against Money Laundering in West Africa (GIABA) has warned. The agency’s caution comes amid growing concern that weak financial systems, pervasive cash transactions and limited regulatory oversight are creating fertile ground for traffickers to operate with near impunity, allowing illicit profits to flow undetected and amplifying the region’s vulnerability to exploitation and transnational organised crime.
At a high‑level regional forum in Lagos convened by GIABA in partnership with the ECOWAS Gender Development Centre (EGDC), experts, government officials and civil society representatives examined the complex interplay between informal economic practices and the expansion of human trafficking networks. The regional forum, titled “Women and Transnational Organised Crime: Human Trafficking Risks in West Africa,” underscored how informal financial behaviours — particularly the preference for cash transactions over formal banking channels — are exploited by criminal networks to launder profits and evade law enforcement scrutiny.
GIABA’s Director‑General, Edwin Harris, in a statement delivered by the organisation’s Acting Director of Policy and Research, Dr. Jeffery Isima, highlighted that West Africa’s cash‑dominated markets generate minimal financial traceability, providing cover for traffickers seeking to move and conceal large sums of money. In many parts of the region, everyday economic activity — from buying a car to paying for services — is conducted in physical currency, bypassing banks and electronic monitoring systems. This endemic informality helps shield money flows connected to human trafficking and other high‑profit illicit activities.
“People prefer cash, and when you make payments by cash you are evading traceability,” the GIABA official said. “It is difficult to keep track of the movement of money. If anything goes wrong with that transaction, it is difficult to trace who bought and who sold.” He added that such conditions “facilitate money laundering and other financial crimes” because enforcement authorities lack visibility into the flows that sustain criminal enterprises.
According to data referenced at the event, global estimates indicate that trafficking in persons generates annual revenues that rival some of the world’s most profitable multinational corporations. The International Labour Organization and United Nations Office on Drugs and Crime have estimated that forced labour and human trafficking bring in hundreds of billions of dollars each year, with women and children disproportionately represented among victims.
West Africa’s economic structure — with a substantial proportion of GDP derived from unregulated, informal markets — compounds the challenge. Research by regional bodies including GIABA and the Economic Community of West African States (ECOWAS) shows that informal economies account for a significant share of economic activity across the sub‑region. Because these sectors operate largely outside formal banking and regulatory frameworks, they are particularly susceptible to exploitation by criminal networks involved in a range of illicit trades, including trafficking, smuggling and cyber‑enabled crimes.
These informal markets also intersect with other vulnerabilities, such as porous borders, limited financial inclusion and small‑scale cross‑border trade practices that rely on cash or alternative remittance systems. Analyses by GIABA suggest that these conditions not only help conceal the proceeds of transnational crime but also enable the integration of illicit funds into legitimate economic activity, blurring the distinction between legal and illegal financial flows.
Speakers at the Lagos forum emphasised that human trafficking is not merely a humanitarian or social issue, but fundamentally a financially driven criminal enterprise. This perspective is reflected in how traffickers orchestrate recruitment, documentation, transport, accommodation and exploitation logistics — all of which involve multiple financial transactions that can be lucrative for organisers and intermediaries.
The GIABA representative also drew attention to the role of women in trafficking networks, noting that while women and girls are often victims, women can also act as facilitators or recruiters in human trafficking operations. In some cases, women embedded within communities may leverage social trust to draw vulnerable individuals into exploitative schemes, further complicating prevention and enforcement efforts.
The Nigerian delegation, represented by officials from the Financial Intelligence Unit and the National Agency for the Prohibition of Trafficking in Persons (NAPTIP), highlighted national efforts to strengthen financial transparency and fight organised crime. Government representatives described initiatives to enhance digital monitoring, improve inter‑agency cooperation, and deepen financial inclusion — measures seen as essential to countering the informal cash economies that shield traffickers.
Participants stressed that effective responses must involve not only enforcement but also broader socio‑economic reforms, including expanding access to formal financial services, promoting electronic payments, and developing legal frameworks that integrate anti‑money‑laundering measures with anti‑trafficking efforts. Strengthening financial intelligence units and increasing cross‑border data sharing were also identified as priorities to disrupt criminal financial flows.
Human trafficking in West Africa often transcends national borders, exploiting regional mobility and free movement protocols that — while beneficial for lawful commerce and migration — can also be misused by criminal networks. Forum participants called for harmonised legislation, joint investigations, and mutual legal assistance among ECOWAS member states to address this challenge effectively.
Here again, the role of financial systems was emphasised: without improved AML/CFT (anti‑money laundering and counter‑financing of terrorism) frameworks across the region, traffickers will continue to exploit regulatory gaps and informal transaction channels to sustain and expand their operations.
Regional experts, civil society representatives and government officials agreed that confronting human trafficking in West Africa requires a holistic approach that addresses both its human toll and its economic foundations. Strengthening formal financial infrastructure, promoting financial literacy and inclusion, and enhancing cooperation among law enforcement and financial regulators were identified as essential to undermining the economic incentives that drive trafficking networks.
As West African states grapple with the dual challenge of supporting informal economies — which provide livelihoods for millions — while curbing their misuse by organised crime, strategic partnerships between governments, regional bodies and international organisations are likely to shape future policy and enforcement directions.
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News Credit to Punch Newspaper
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