Nigeria is reportedly losing an estimated $18 billion every year due to profit shifting, aggressive tax avoidance, and other illicit financial practices by multinational corporations operating within its borders.
This alarming figure was disclosed by the Minister of State for Finance, Dr. Doris Uzoka-Anite, during a national conference on Illicit Financial Flows in Abuja. She identified illicit financial flows as a complex and dangerous issue that includes not only tax evasion but also terrorism financing.
According to Uzoka-Anite, the current administration under President Bola Tinubu is implementing sweeping fiscal reforms to build a self-sufficient economy less dependent on oil or external funding.
“Huge sums of money are transferred out of this country, and this robs the country of resources that could be used to finance much-needed public services,” she stated, emphasizing the urgent need to clamp down on tax-related abuses.
The minister noted that for too long, Nigeria’s over-reliance on oil revenue has left the economy vulnerable. With oil prices frequently unstable, the country is now shifting towards non-oil sources of income—especially tax revenue—to sustain public services and ensure long-term fiscal health.
Also speaking at the event, the Executive Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, warned that illicit financial flows, particularly through tax avoidance schemes by multinationals, continue to undermine Nigeria’s economic stability. He said the FIRS is responding by simplifying tax processes and promoting voluntary compliance through enhanced taxpayer education.
Meanwhile, Dr. Samson Abanni, an alumnus of the School of Politics, Policy and Governance, highlighted the broader implications of Nigeria’s newly signed tax bills. He said the laws could have as much impact as a general election, noting that they subtly but significantly altered the balance of fiscal power among federal, state, and revenue agencies.
Abanni criticized state governments for failing to engage meaningfully with the reforms, arguing that they missed the opportunity to influence the national conversation around resource control. “Because it did not bear the brashness of politics, it flew under their radar until it was too late,” he had said, warning that the consequences of their inaction could be far-reaching.
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