Nigeria’s Federal Inland Revenue Service (FIRS) is taking bold steps to combat illicit financial flows (IFFs) that continue to drain the country’s resources and undermine development.

At the National Conference on Illicit Financial Flows held on July 22, 2025, in Abuja, FIRS Chairman Dr. Zacch Adedeji made a powerful call for urgent reforms to stop the silent siphoning of the country’s wealth

Dr. Adedeji explained that Nigeria’s inability to meet its obligations in education, healthcare, and infrastructure is tied to the unchecked movement of capital out of the country.

He noted that while taxes are collected, oil revenues are generated, and businesses flourish, aggressive tax avoidance, profit shifting, and the use of anonymous companies have created loopholes for funds to exit the country undetected.

“What leaves Nigeria through these channels is not just money, but lost opportunity,” he said.

According to the FIRS chief, these illicit flows are not just criminal acts—they reflect systemic weaknesses, outdated international tax agreements, and inadequate tools for financial surveillance.

Tax treaties under review

A key focus of Dr. Adedeji’s remarks was the need to review and renegotiate Nigeria’s outdated tax treaties with other nations.

Many of these agreements, he noted, were signed decades ago and no longer serve the country’s economic interest.

He revealed that negotiations with some countries are already underway to close loopholes that allow multinationals to move profits offshore legally.

To institutionalise the fight, the FIRS has established a dedicated Proceeds of Crime Management and Illicit Flows Coordination Directorate.

The unit is tasked with coordinating inter-agency action and recovering lost revenue, particularly in collaboration with agencies such as the EFCC, ICPC, CBN, Customs, and international partners.

This new directorate will not only pursue financial recovery but also build data intelligence systems to monitor and flag suspicious transactions in real time.

Dr. Adedeji emphasised the importance of visibility in Nigeria’s financial systems, declaring that the country “cannot afford to be blind” to the money moving in and out of its economy.

In addition to treaty reform and system upgrades, Dr. Adedeji referenced the FIRS' recent collaboration with the ICPC to establish an Anti-Corruption and Transparency Unit within the agency. This, he said, ensures that integrity is enforced at every level of tax collection.

Dr. Adedeji stressed that no single agency can tackle illicit financial flows alone.

He called for unified action from every relevant body—FIRS, CBN, Customs, EFCC, ICPC, Finance and Trade ministries—stating that everyone must work together to stop the bleeding of national resources.

“This is not just a fight against corruption—it is a defence of national development,” he concluded.

Nigerians to pay no VAT on pads, 23 other items

Legit.ng earlier reported that President Bola Tinubu has signed a sweeping tax reform into law, exempting several items from the 7.5% value-added tax (VAT).

The Nigeria Tax Act, part of four major fiscal bills signed on June 26, 2025, is designed to reduce the cost burden on citizens and stimulate growth in strategic sectors.

The law is expected to take effect on January 1, 2026, and will be implemented by the newly established Nigeria Revenue Service (NRS), which replaces the Federal Inland Revenue Service.