FIRS Steps Up Battle Against Hidden Revenue Leakages from Corporate Dealings
As Nigeria intensifies its search for increased revenue for government funding, the Federal Inland Revenue Service (FIRS) is turning its focus to a silent but significant drain on the nation’s coffers in illicit financial flows masked as legitimate business activities.
Professor Bolaji Owasanoye, Coordinating Director of the FIRS Directorate for Proceeds of Crime Management and Illicit Financial Flows, revealed that a considerable portion of lost revenue stems from cleverly disguised commercial practices by corporate entities, especially multinationals.
Speaking in an interview, Owasanoye who previously chaired the Independent Corrupt Practices and Other Related Offences Commission (ICPC) stated that while corruption and criminal activities have long been flagged as threats to revenue generation, they account for only about 30% of the problem.
He emphasized that the remaining 60% is quietly slipping away through complex, seemingly legal corporate transactions that erode Nigeria’s tax base.
“These losses often come from profit-shifting strategies by corporations operating within the country. Although their transactions appear legitimate, many are designed to minimize taxable income and move money offshore,” he said.
To tackle this under-the-radar economic threat, the FIRS is organizing a national conference on illicit financial flows. The event is aimed at raising awareness, fostering cross-agency collaboration, and building capacity among tax officers to detect and block revenue leaks hidden in corporate paperwork.
Owasanoye stressed that tax revenue remains Nigeria’s most reliable funding stream, and protecting it is essential to national development.
The upcoming conference will also serve as a platform to push for greater transparency, improved data sharing between institutions, and practical training for FIRS personnel.
He added, “This isn’t just about tax enforcement, it’s about national survival. Stronger inter-agency collaboration, improved oversight, and enhanced skills for our field officers will go a long way in reversing the current trend.”
The FIRS also plans to work more closely with relevant stakeholders to close existing loopholes and ensure those engaged in exploitative tax practices are held accountable. A key goal of the conference will be to generate reliable data that quantifies the losses and builds a united front against economic sabotage disguised as corporate efficiency.
