Nigeria is losing an estimated $18 billion every year to tax evasion, profit shifting, and other illicit financial flows, according to the country’s Ministry of Finance — a figure officials warn threatens economic growth and fiscal stability.
Minister of State for Finance, Dr. Doris Uzoka-Anite, disclosed the figure on Tuesday in Abuja at the National Conference on Illicit Financial Flows. She described the losses as a “hydra-headed monster” that drains vital resources from the economy and undermines Nigeria’s development agenda.
Dr. Uzoka-Anite said the majority of the outflows stem from aggressive tax avoidance and profit-shifting strategies by multinational corporations operating in the country. These practices, she noted, deprive Nigeria of funds needed for health care, education, infrastructure, and job creation.
“Illicit financial flows thrive where systems are weak and coordination is absent. But they are not inevitable. They can be stopped when political will meets institutional resolve,” the minister said.
She added that the government is prioritizing reforms under President Bola Tinubu’s “Renewed Hope Agenda” to diversify revenue sources beyond volatile oil earnings. Tax reform, she said, will play a central role in building a more resilient and transparent economy.
Dr. Uzoka-Anite praised Tinubu for signing four major tax bills into law earlier this year, calling them a crucial step toward simplifying the tax system, plugging leakages, and restoring public confidence. She stressed, however, that legislation must be backed by strong enforcement and institutional cooperation.
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The ministry has adopted a three-pronged approach to tackling illicit flows: modernizing tax laws, enforcing beneficial ownership disclosures, and leveraging digital tools and data analytics to detect and prevent tax-related crimes in real time.
The Executive Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, echoed the warning, describing illicit flows as a “structural threat” to Nigeria’s fiscal health. He said trade false invoicing and profit shifting by multinational firms continue to erode the country’s revenue base.
Adedeji highlighted FIRS’ creation of a Tax Intelligence and Automation Department to improve real-time data analysis and compliance monitoring. He added that Nigeria’s double taxation agreements are being reviewed to eliminate outdated clauses that facilitate capital flight.
Both officials called for stronger inter-agency coordination and intelligence-led enforcement to protect Nigeria’s fiscal sovereignty and close the gap on revenue losses.
