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Multinationals accused of profit shifting, draining national wealth
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FG warns illicit flows threaten security, reforms target revenue diversification
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FIRS vows stronger enforcement under Tinubu’s Renewed Hope agenda
The Federal Government has disclosed that Nigeria loses approximately $18 billion every year to profit shifting and tax avoidance schemes perpetrated by multinational corporations operating within the country.
Minister of State for Finance, Dr Doris Uzoka-Anite, revealed this on Tuesday at the ongoing National Conference on Illicit Financial Flows organised by the Federal Inland Revenue Service (FIRS). She described illicit financial flows as a “hidden pipe” draining Nigeria’s wealth and undermining efforts to build critical infrastructure.
“These flows are not just technical problems; they are political, developmental, and even national security concerns,” Uzoka-Anite stated. “It is estimated that Nigeria loses about $18 billion annually due to profit shifting and tax avoidance practices, especially by multinationals transacting here.”
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The minister explained that such criminal acts strip the country of resources required to provide vital public services. She stressed that under President Bola Tinubu’s Renewed Hope agenda, reforms are underway to create a resilient and self-reliant economy focused on revenue generation rather than excessive borrowing.
“For decades, Nigeria relied on volatile oil revenues. This is unsustainable. Our reforms aim to diversify revenue sources, shifting focus to non-oil sectors,” she added.
FIRS Executive Chairman, Zacch Adelabu Adedeji, also expressed concern about the impact of illicit financial flows on the economy. He affirmed that recent tax reforms approved by President Tinubu demonstrate the administration’s commitment to overhauling the tax system, improving transparency, and fostering trust in revenue collection.
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“Legal reform is only the starting point. We must reinforce enforcement, optimise digital compliance, and build public trust through fairness and predictability.
“Our goal is to foster a culture where compliance is driven by trust, not fear. At FIRS, we are responding with multidimensional strategies to create a smart and secure tax system,”Adedeji said
