"The whole African football set up is corrupt," said the 30-year-old Blackburn striker who had a loan spell with Glasgow Rangers last season.
"We will never win major competitions in Senegal and nor will Africa on a global level. The whole African football system is corrupt," Diouf told French RFI radio in an interview.
He also blamed his current absence from his country's national squad on the fact that "there is a lot of scheming going on today in Senegalese football."
"They (the country's football authorities) are afraid of my reactions, I am someone whose views count for something," said the experienced forward.
He went on: "After two matches against Cameroon (in qualifiers for the 2012 African Cup of Nations), the (Senegalese) players had not had their bonuses - that's terrible," said Diouf.
"There are a lot of things to hide - bonuses aren't paid, it's not normal and if I was on the squad I would come out and say so," he declared.
Diouf - who burst onto the international scene when he was part of the Senegal team that reached the 2002 World Cup quarter-finals - added that corruption was so rife that it could end up "killing African football."
And he concluded: "Our federations are not professional and often the federations like the money that comes with football but not football itself.
"I am not worried about speaking the truth and not returning to the national team."