Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS), has accused multinational corporations of ripping off Nigeria to the tune of billions of naira annually through illicit financial practices.
He said aggressive tax evasion, profit shifting, and trade misinvoicing by these companies are draining national resources and stalling development.
Speaking at the National Conference on Illicit Financial Flows (IFFs), themed “Combating Illicit Financial Flows: Strengthening Nigeria’s Domestic Resource Mobilisation”, Adedeji described the situation as a major structural threat to the country’s economic stability and fiscal future.
He noted that the recent signing of four tax reform bills by President Bola Tinubu on June 26, 2025, marks a new phase in Nigeria’s effort to modernise its tax regime and boost transparency. However, he stressed that legislation alone is not enough to stop the hemorrhaging of resources.
“To deliver on the promise of these reforms, we must move beyond laws and take deliberate action — enforce compliance, deploy technology, and rebuild trust in the tax system,” Adedeji said.
Adedeji also disclosed that Nigeria’s existing double taxation agreements (DTAs) are under review, with some already being renegotiated to prevent exploitation by companies shifting profits abroad.
He emphasised that only 19 percent of Nigerians currently pay tax — a statistic that underscores the urgency for reform and a broader tax base.
