The Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, has revealed that Nigeria loses $18 billion annually due to illicit financial flows, largely driven by aggressive tax avoidance schemes employed by multinational corporations.
Adedeji made the disclosure during a national conference on illicit financial flows organised by the FIRS. He described the situation as a critical threat to Nigeria’s fiscal stability, especially for a resource-constrained country facing urgent development needs.
“Like many other resource-constrained nations, we lose billions annually through these illicit conduits—making this conference not just a policy dialogue, but a national imperative,” he stated.
In response, Adedeji said the FIRS has launched a deliberate, multidimensional strategy, including the review of Nigeria’s Double Taxation Agreements (DTAs). He noted that some of the current treaties contain outdated clauses that inadvertently enable profit shifting and capital flight.
“I have personally initiated renegotiations with several jurisdictions to align our treaties with present economic realities,” he added.
Furthermore, under the Proceeds of Crime Act (2022), the FIRS has established the Proceeds of Crime Management and Illicit Financial Flows Coordination Directorate, positioning itself at the centre of Nigeria’s fight against financial crimes.
The agency aims to enhance transparency, close legal loopholes, and strengthen inter-agency coordination in curbing illicit flows and improving revenue mobilisation.
