Nigeria illicit financial flows cost the nation $18bn annually, says minister. Urgent reforms aim to stop revenue loss and rebuild a stable, tax-driven economy
The Federal Government has revealed that Nigeria illicit financial flows result in an annual loss of about 18 billion dollars.
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The announcement was made by the Minister of State for Finance, Dr Doris Uzoka-Anite, during a national conference on the issue organised by the Federal Inland Revenue Service.
She described illicit financial flows as a hidden pipeline draining the country’s wealth. According to her, these practices not only reduce national revenue but also prevent the government from providing essential infrastructure.
“Illicit financial flows are not just technical problems but political, and developmental problems. It is also a national security concern,” said the minister. “Illicit financial flow is a monster that must be eradicated.”
Dr Uzoka-Anite explained that profit shifting and tax avoidance by multinational corporations operating in Nigeria are key contributors.
She stressed that these activities strip the country of needed resources, making it harder to finance vital public services.
She added that the Renewed Hope agenda under President Bola Tinubu is focused on economic reforms that prioritise revenue over debt.
Part of this strategy includes shifting away from the unstable reliance on oil towards a broader non-oil tax base.
FIRS Executive Chairman Zacch Adelabu Adedeji also spoke at the event. He emphasised the urgency of protecting Nigeria’s national resources. “We are entering a new era of fiscal reform,” he said.
He cited the recent signing of four tax reform bills as a sign of the government’s commitment. According to him, “Legal reform is only a starting point…
We must reinforce enforcement, optimise digital compliance and build public trust through fairness, predictability and strategic communication.”
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Adedeji concluded by saying, “Our goal is to forestall a culture where compliance is driven by trust and not by fear. We are building a tax system that is proactive, smart and secure.”
