By David Akinmola
As Nigeria intensifies discussions on a new wave of measures to combat illicit financial flows (IFFs), stakeholders across government, finance, and civil society are calling for bold reforms to plug revenue leaks that have long undermined the country’s economic stability.
Each year, Nigeria loses an estimated $18–$25 billion to illicit financial flows, according to the United Nations Conference on Trade and Development (UNCTAD). These funds drained through trade misinvoicing, tax evasion, money laundering, and illegal capital flight—represent a silent hemorrhage in a country struggling with mounting debt, underfunded infrastructure, and rising poverty.
Now, following renewed interest by the federal government, the country is poised to launch a coordinated crackdown on the shadowy networks draining public wealth. A new policy blueprint is expected to focus on strengthening cross-border financial regulation, tightening loopholes in the real estate and extractive industries, and boosting collaboration with international enforcement agencies.
“We are entering a phase where inaction is no longer an option,” said a senior official in the Federal Ministry of Finance who asked not to be named. “Illicit financial flows are not just a tax problem—they are a national security threat.”
The Real Cost: Schools, Hospitals, and Jobs Left Behind
Behind the big numbers are real-world consequences. Each dollar illicitly transferred out of Nigeria is one less for roads, schools, and hospitals. Experts say IFFs deprive the country of vital development capital and widen the inequality gap.
“In many cases, we see public budgets slashed because funds have disappeared through loopholes, shell companies, or corrupt procurement practices,” said Chido Onumah, coordinator at the African Centre for Media and Information Literacy (AFRICMIL), an anti-corruption advocacy group. “The people who suffer are ordinary Nigerians—children without textbooks, patients in clinics without medicine, youths without jobs.”
Tax Justice and Transparency in Focus
As part of the renewed offensive, Nigeria is expected to adopt stronger transparency measures, including the implementation of public beneficial ownership registers to unmask anonymous companies used to funnel illicit funds abroad. Reforms are also expected in customs enforcement and financial reporting, especially around trade transactions.
Tax experts argue that multinational corporations operating in Nigeria have been among the biggest enablers of IFFs through transfer pricing abuses and aggressive tax avoidance.
“The time has come for Nigeria to renegotiate many of its outdated double taxation treaties and push for fairer tax rules,” said Ifueko Omoigui Okauru, former Executive Chair of the Federal Inland Revenue Service (FIRS).
Global Partnerships, Local Action
Nigeria’s strategy is likely to involve closer partnerships with global institutions such as the Financial Action Task Force (FATF), the OECD, and the African Union. A critical step will be enforcing existing laws and improving institutional capacity—especially within the EFCC, FIRS, and the Nigeria Financial Intelligence Unit (NFIU).
However, civil society leaders warn that enforcement must be impartial and free from political interference. “To succeed, the fight against illicit financial flows must be as much about political will as it is about technical reforms,” said Auwal Musa Rafsanjani, Executive Director of CISLAC.
Hope on the Horizon?
While past efforts have often stalled amid bureaucratic resistance and entrenched interests, analysts believe growing public pressure and dwindling oil revenues may push the government to act more decisively.
There is also cautious optimism around the proposed National Anti-IFFs Strategy, a multi-agency framework expected to be unveiled later this year. If implemented effectively, it could mark a turning point in Nigeria’s decades-long struggle to keep its wealth within its borders.“It’s time to match rhetoric with results,” said financial analyst Bimbola Akinola. “If Nigeria wants to build a sustainable future, we must first stop the bleeding.”
As policymakers weigh the next steps, many agree on one thing: the battle against illicit financial flows will not be easy—but it is necessary, urgent, and long overdue.
