Minister of Finance and Coordinating Minister for the Economy, Mr. Wale Edun, has revealed that Nigeria loses approximately $15 billion annually due to profit shifting and adverse tax avoidance practices, especially by multinational corporations operating in the country.
Edun made the disclosure on Tuesday at the National Conference on Illicit Financial Flows (IFFs) held in Abuja, with the theme: “Combating Illicit Financial Flows: Strengthening Nigeria’s Domestic Resource Mobilisation.”
He explained that profit shifting, a method used by multinational companies to move profits from high-tax countries to low-tax jurisdictions or tax havens, significantly undermines Nigeria’s ability to generate revenue for essential public services.
“Huge sums of money are moved out of the country, robbing Nigeria of resources that could be used to finance the much-needed public services,” Edun stated.
Also speaking at the event, Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, described Illicit Financial Flows as a major threat to Nigeria’s fiscal stability, calling for urgent reforms and coordinated action.
“IFFs are among the most critical challenges threatening our national resources. We must take decisive action to protect revenue and build a resilient, equitable future,” Adedeji said.
The conference brought together key stakeholders across government, private sector, and civil society to explore actionable strategies aimed at curbing IFFs and improving domestic resource mobilisation in Nigeria.
