Nigeria lost about N5.4 trillion to tax evasion by multinational companies operating in Nigeria between 2007 and 2017.
This was according to the Executive Chairman of the Federal Inland Revenue Service (FIRS), Muhammad Nami who stated this on Monday at a “Workshop on Effective Audit of Multinational Corporations for Domestic Revenue Mobilisation in Nigeria,” organized by the Service in junction with the Tax Justice Network in Abuja
He cited a 2014 report by the High-Level Panel on Illicit Financial Flows from Africa, which stated that “Nigeria accounted for 30.5% of money lost by the continent through illicit financial flows.”
To solve this problem, Nami said the FIRS has created 35 additional Tax Audit Units in the country to stem illicit financial flow out of Nigeria and improve tax compliance rate.
“At the FIRS we are paying greater attention to tax audit in general and transfer pricing audit in particular in order to improve the level of tax compliance in the country,” a statement by Abdullahi Ahmad, director of the FIRS communications and liason department, quoted Nami to have said.
“As a result, in the last one year, we have created more than 35 additional tax audit units and deployed experienced and capable staff to take charge of these offices.”