Abuja: The Minister of State for Finance, Dr. Doris Uzoka-Anite, emphasized the urgent need to address the challenge of Illicit Financial Flows (IFFs) to promote national development and secure Nigeria's economic sovereignty. Speaking at the National Conference on IFFs organized by the Federal Inland Revenue Service (FIRS), she highlighted the detrimental impact of IFFs on the nation's economy.
According to News Agency of Nigeria, Dr. Uzoka-Anite noted that IFFs are a significant issue undermining development efforts and weakening economic sovereignty. The minister described IFFs as hidden drainpipes of national wealth, eroding revenue generation, reducing tax bases, fueling corruption, and diminishing resources available for essential investments in sectors like health, education, and infrastructure.
She explained that IFFs manifest in various forms, including terrorist financing, money laundering, and corporate tax evasion. Nigeria reportedly loses $18 billion annually due to IFFs resulting from profit shifting and aggressive tax avoidance by multinational corporations operating in the country. The minister stressed that such losses strip the country of resources vital for public services and job creation.
Under President Bola Tinubu's Renewed Hope Agenda, Nigeria is undergoing strategic fiscal reforms aimed at building a resilient, self-reliant economy, driven by transparent and efficient revenue generation rather than debt or aid. The recent approval of four landmark tax reform bills marks a significant step toward this vision.
The Executive Chairman of FIRS, Dr. Zacch Adedeji, reiterated the critical challenge posed by IFFs to Nigeria's economy. He pointed out that IFFs through tax evasion, profit shifting, and trade misinvoicing represent a structural drain on the economy, depriving it of resources needed for inclusive development. Adedeji highlighted the urgent need for collective action to safeguard national resources.
In her keynote address, Mrs. Irene Ovonji-Odida, Member of the Africa Union High-Level Panel on IFFs, discussed the broader global context, including economic distress and geopolitical tensions. She underlined the importance of global cooperation to address the transnational nature of IFFs, which require coordinated efforts from all countries to combat effectively.