Nigeria Loses $18b Annually To illicit Financial Flows-FIRS Boss

The Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, has disclosed that Nigeria loses an average of $18 billion annually to illicit financial flows, reports Business Today NG.
Adedeji made this disclosure at the National Conference on Illicit Financial Flows held in Abuja on Tuesday, 22 July, 2025.
The FIRS boss said this development is making the fight against these practices a matter of national urgency described the scale of capital outflows from Nigeria as deeply troubling.
“The scale of these flows, especially through aggressive tax avoidance by multinationals exploiting opaque global arrangements, continues to threaten Nigeria’s fiscal stability,” Adedeji said.
According to the FIRS boss, the Service is adopting a deliberate, multi-pronged strategy to tackle the menace, starting with the review and renegotiation of Nigeria’s Double Taxation Agreements (DTAs). Some of these treaties, he noted, contain outdated provisions that may inadvertently enable profit shifting and capital flight.
“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 disclosed.
Adedeji added that FIRS under his leadership is also pursuing voluntary tax compliance through simplified systems and taxpayer education, and it has launched a comprehensive digital transformation programme.
As part of this initiative, Adedeji disclosed that a new Tax Intelligence and Automation Department has been created to deploy real-time analytics, integrated third-party data, and anomaly detection.
“This is not just about digital infrastructure—it’s about digital vigilance,” Adedeji said.
Recognising the need for collective action, Adedeji disclosed that the service t has also established a dedicated Proceeds of Crime Management and Illicit Financial Flows Coordination Directorate, which is tasked with implementing the Proceeds of Crime Act (2022). The unit coordinates with law enforcement, the judiciary, and international development partners to track and recover illicit funds.
Adedeji admitted that enforcement alone will not be enough, stressing the need for an agile and intelligence-led response that keeps pace with evolving tactics by criminal networks.
“Whether through secrecy jurisdictions, manipulation of beneficial ownership, or digital innovations, illicit actors continue to outpace traditional enforcement. Our response must therefore be globally coordinated,” he cautioned.