Majority of tax evasion happens at state level – NFIU

The Chief Executive Officer of the Nigerian Financial Intelligence Unit, Mrs Hafsat Bakari, has disclosed that most cases of tax evasion occur at the state level.

She made this statement during the first Revenue Assurance Summit in Abuja on Tuesday.

The summit, organised by the Nigerian Financial Intelligence Unit, brought together representatives from the Internal Revenue Services of all states and the Federal Capital Territory.

Bakari highlighted the agency’s ongoing efforts to address tax-related crimes by working closely with state tax authorities, noting that the NFIU’s data on financial transactions could help curb tax evasion.

She said, “While our initial efforts focused on supporting the Federal Inland Revenue Service, we have expanded our collaboration to sub-national counterparts. Our analysis revealed that the majority of tax evasion occurs at the state level, and the data held by the NFIU could greatly benefit State Internal Revenue Services.”

Bakari also introduced the Crime Records Information Management System, a secure platform designed to facilitate the safe exchange of intelligence between the NFIU and state Internal Revenue Services.

“Through CRIMS, we have entirely eliminated paper records which are prone to compromise, and we have robust audit mechanisms to ensure we are aware of who is asking for and receiving our intelligence,” she said.

She further emphasised the role of Financial Intelligence Units in enhancing revenue generation, explaining that FIUs are tasked with analysing financial reports to detect suspicious transactions and criminal activity, including tax evasion.

Bakari added that the NFIU had established a dedicated Tax Crimes and Revenue Assurance Department to prioritize tax crimes and revenue generation.

In his remarks, the Chairman of the Presidential Fiscal Policy and Tax Reform Committee, Taiwo Oyedele, revealed that the federal government is considering sanctions for agencies that refuse to share data with other government bodies.

His comments were in response to complaints from the Executive Secretary of the Joint Tax Board, Olusegun Phillip Adesokan, who recounted an incident where a government agency demanded payment for data requested by the JTB.

Oyedele condemned such practices, stressing the need for collaboration and data sharing among government agencies to boost revenue generation.

He warned that a law is being drafted to criminalize data hoarding, stating, “We are developing a protocol to ensure integrity, data protection, and other safeguards. We will give you a deadline of 48 hours; if you don’t release the data, there will be consequences.”