The Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji stated that Nigeria loses $18 billion annually due to illicit financial flows.

Speaking at the conference organised by the FIRS on Illicit Financial Flows, Adedeji lamented that the scale of these flows, especially through aggressive tax avoidance by multinationals exploiting opaque global arrangements, continues to threaten Nigeria’s fiscal stability.

He reiterated that “Like many other resource-constrained nations, we lose billions ($18 billion) annually through these illicit conduits—making this conference not just a policy dialogue, but a national imperative.”

According to him, the FIRS is responding “with a deliberate, multidimensional strategy.”

“We are reviewing Nigeria’s Double Taxation Agreements (DTAs), some of which—due to outdated clauses—may inadvertently enable profit shifting. I have personally initiated renegotiations with several jurisdictions to align our treaties with present economic realities and to close loopholes that facilitate capital flight,” he added.

He further noted that as the designated coordinating agency under the Proceeds of Crime Act (2022), FIRS has established the Proceeds of Crime Management and Illicit Financial Flows Coordination Directorate.

“This unit is leading implementation efforts, supporting asset recovery, and coordinating with law enforcement, the judiciary, private sector actors, and international development partners,” he said.

Also speaking Irene Ovonji-Odida, Member of Mbeki High Level Panel on Illicit Financial while delivering the Keynote address, revealed that African countries lose about $407 billion from illicit financial flows.

“The AU/ECA High Level Panel on Illicit Financial Flows from Africa, also known as the Mbeki Panel discovered that “Highest tax losses were from West and North Africa, including Nigeria.

“Commercial tax avoidance practices caused 65% of IFFs: with up to $407 billion lost from trade mispricing from 2001-2010. Organized crime drove 30% of IFFs while 5% of IFFs came from official government bribery.” She added

In her address, the Minister of State for Finance, Dr. Doris Uzoka-Anite argued that the fight against IFFs cannot be left to one institution alone.

“It requires a whole-of-government and whole-of-society approach. We must strengthen inter-agency collaboration, enhance data sharing, harmonize policies, and ensure real time tracking of financial flows,” she added.

She stated that the Ministry of Finance is “fully committed to a multi-agency, multi-stakeholder approach in tackling illicit financial flows.”

“Our strategy is anchored on three pillars: Policy Alignment and Legislative Reform: Modernizing our tax and financial frameworks to reduce loopholes that facilitate tax evasion and illegal capital flight.”