Minister of State for Finance, Dr Doris Uzoka-Anite, has said Nigeria loses an estimated $18bn annually to tax-related illicit financial flows, describing the trend as a serious threat to the country’s development and economic sovereignty.
She made the disclosure in Abuja on Tuesday while delivering her opening remarks at the National Conference on Illicit Financial Flows.
According to the minister, the $18bn figure is largely linked to profit-shifting and aggressive tax avoidance strategies employed by multinational corporations operating in the country.
She said the outflows, often masked under legal or grey financial arrangements, deny Nigeria the resources needed for investments in healthcare, education, infrastructure, and job creation.
It is estimated that Nigeria loses $18bn annually to IFFs due to profit shifting and aggressive tax avoidance practices by some multinational corporations transacting business in Nigeria,” Uzoka-Anite said.
She described illicit flows as a “hydra-headed monster” that must be tackled decisively, noting that while the conversation at the conference would focus on tax avoidance and evasion, the broader issue also encompasses terrorist financing and money laundering.
Uzoka-Anite said the Renewed Hope Agenda of President Bola Tinubu is focused on repositioning the economy away from a reliance on volatile oil revenues towards a more transparent and robust domestic revenue framework.
She said tax reforms would play a central role in that shift.
“Our reforms are aimed at building a resilient and self-reliant economy—driven not by debt or aid, but by transparent, equitable and efficient revenue generation,” she said.
The minister also commended President Bola Tinubu for recently signing four landmark tax bills into law, describing the move as a significant step towards simplifying Nigeria’s tax system, plugging leakages and boosting public confidence.
However, she added that laws alone are not sufficient and must be accompanied by coherent enforcement and institutional collaboration.
She said the Ministry of Finance has adopted a three-pronged approach anchored on modernising tax laws, enforcing transparency through beneficial ownership disclosures, and using digital tools and data intelligence to detect and prevent illicit flows in real time.
Uzoka-Anite noted that no single institution could successfully address the challenge of illicit financial flows, stressing the importance of inter-agency coordination and a whole-of-government response.
“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,” she said.
She praised the Federal Inland Revenue Service for deploying technology and data tools to improve compliance and crack down on tax-related misconduct, saying these efforts were already contributing to reduced leakages.
Also speaking, the Executive Chairman of the Federal Inland Revenue Service, Zacch Adedeji, described illicit financial flows as a structural threat to Nigeria’s economy, warning that the country loses billions of dollars annually through tax evasion, profit shifting, and trade misinvoicing.
Adedeji said aggressive tax avoidance by some multinational companies exploiting weak global frameworks continues to undermine Nigeria’s fiscal stability.
He said the recent assent to four tax reform bills by President Bola Tinubu was a strong signal of the administration’s resolve to overhaul the country’s tax system and institutionalise transparency.
Adedeji noted that the FIRS had adopted a three-pronged strategy focused on encouraging voluntary compliance through taxpayer education, deploying advanced digital tools, and strengthening inter-agency collaboration.
He disclosed that the service had launched a Tax Intelligence and Automation Department to enhance real-time analytics, detect anomalies, and secure the system against manipulation.
The FIRS chairman also revealed that Nigeria’s double taxation agreements were under review, with renegotiations already initiated to remove outdated clauses that facilitate capital flight.
He maintained that combating illicit flows requires coordinated, intelligence-led action and called for stronger enforcement and data-sharing across institutions to protect Nigeria’s revenue base and fiscal sovereignty.
