The Federal Inland Revenue Service (FIRS) has said it is adopting multidimensional strategies to combat $18 billion Illicit Financial Flows (IFFs) which has threatened the nation’s fiscal stability.

The Executive Chairman of FIRS, Dr. Zach Adedeji said this at the IFF National Conference 2025, in Abuja on Tuesday.

Adedeji said Illicit Financial Flows are at the instance of multinationals working to take advantage of opaque global arrangements.

“The scale of these flows, especially through aggressive tax avoidance by multinationals exploiting opaque global arrangements, continues to threaten Nigeria’s fiscal stability.

He stated that “Like many other resource-constrained nations, we lose billions ($18 billion) annually through these illicit conduits—making this conference not just a policy dialogue, but a national imperative.

He affirmed that FIRS is deploying strategies like renegotiation of taxation agreements, taxpayer education, technology intelligence to curb the menace which has slowed the pace of development in Nigeria.

“At the Federal Inland Revenue Service, we are responding with a deliberate, multidimensional strategy. We are reviewing Nigeria’s Double Taxation Agreements (DTAs), some of which—due to outdated clauses—may inadvertently enable profit shifting. I have personally initiated renegotiations with several jurisdictions to align our treaties with present economic realities and to close loopholes that facilitate capital flight.

“We are championing voluntary compliance by promoting taxpayer education and simplifying systems. Our goal is to foster a culture where compliance is driven by trust, not fear.

“We are harnessing technology and intelligence. We have launched an ambitious digital transformation programme, including the establishment of a Tax Intelligence and Automation Department. With real-time analytics, integrated third-party data, and anomaly detection, we are building a tax system that is proactive, smart, and secure. This is not just about digital infrastructure—but digital vigilance.

The Chairman of the conference, who is the Minister of State for Finance, Dr. Reiterate the need to collaborate in the fight against illicit flows.

“The fight against IFFs cannot be left to one institution alone. It requires a whole-of-government and whole-of-society approach. We must strengthen inter-agency collaboration, enhance data sharing, harmonize policies, and ensure real time tracking of financial flows.

“At the Ministry of Finance, we are fully committed to a multi-agency, multi-stakeholder approach in tackling illicit financial flows. Our strategy is anchored on three pillars: Policy Alignment and Legislative Reform: Modernizing our tax and financial frameworks to reduce loopholes that facilitate tax evasion and illegal capital flight, she stated.

She further said through a unified effort to Nigeria can plug the gaps that enable IFFs and reclaim the fiscal space necessary for national development.

Meanwhile, in delivering the Keynote address, Hon Irene Ovonji-Odida, Member of Mbeki High Level Panel on Illicit Financial Flows from Africa revealed that the most affected in IFFs in Africa comprise of West and North African states.

According to her, “Highest tax losses were from West and North Africa, including Nigeria. Commercial tax avoidance practices caused 65% of IFFs: with up to $407 billion lost from trade mispricing from 2001-2010. Organized crime drove 30% of IFFs while 5% of IFFs came from official government bribery.”

While quoting the panel report on IFFs, she said it undermined development, security, and governance and public expenditure in critical sectors such as education, health, and natural resources.