FG Raises Alarm: Nigeria Loses $18 Billion Every Year to Corporate Tax Evasion

The Federal Government has revealed that Nigeria loses an estimated $18 billion annually due to aggressive profit shifting, tax evasion, and illicit financial flows orchestrated primarily by multinational corporations operating in the country.

According to iReporter Online, the Minister of State for Finance, Dr. Doris Uzoka-Anite, disclosed this during her address at the National Conference on Illicit Financial Flows organized by the Federal Inland Revenue Service (FIRS). The minister described illicit financial flows as a “hidden pipe” draining Nigeria’s economic resources and weakening its development potential.

She emphasized that these financial crimes are not merely technical but have become serious political and developmental challenges, threatening national security and undermining the country’s capacity to provide essential services.

“Illicit financial flows are a monster that must be eradicated,” she said. “These flows not only reduce government revenue but also cripple our ability to fund infrastructure and public services. Every dollar siphoned out of this country is a missed opportunity to develop Nigeria.”

Dr. Uzoka-Anite added that under President Bola Tinubu’s Renewed Hope agenda, Nigeria is embarking on broad fiscal reforms designed to reduce dependency on oil and build a revenue-driven economy. She stressed the urgent need to shift focus from volatile oil revenues to more stable and transparent non-oil income sources.

Also speaking at the event, the Executive Chairman of the FIRS, Zacch Adedeji, underscored the economic threat posed by illicit financial flows, calling them a major drain on national development efforts. He expressed optimism that with new tax reform bills signed into law, Nigeria is entering a new era of fiscal transformation.

“The reforms demonstrate the government’s commitment to overhauling the tax system, strengthening transparency, and improving legal and institutional frameworks,” Adedeji said. “But legal reform is only the beginning. We must enforce compliance, deploy digital tools, and build public trust through fairness and clarity.”

He stated that the FIRS is implementing deliberate strategies to create a modern, secure, and smart tax ecosystem, where compliance is driven by trust rather than fear.