The Chief Executive Officer of the Nigerian Financial Intelligence Unit, Mrs Hafsat Bakari revealed that the majority of tax evasion cases occur at the state level.
This was disclosed by Bakari during the first Revenue Assurance Summit in Abuja on Tuesday, according to The Punch.
Bakari emphasized the agency’s ongoing efforts to combat tax-related crimes by collaborating with state tax authorities.
She noted that the NFIU’s data on financial transactions could be instrumental in reducing 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 aimed at enabling 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.
The Chairman of the Presidential Fiscal Policy and Tax Reform Committee, Taiwo Oyedele disclosed that the federal government is contemplating sanctions for agencies that fail to share data with other government bodies.
His comments were in response to concerns raised by Olusegun Phillip Adesokan, Executive Secretary of the Joint Tax Board, who reported an incident in which a government agency requested payment for data needed by the JTB.
Oyedele condemned these practices, underscoring the importance of collaboration and data sharing among government agencies to enhance revenue generation.
He warned that a law is being drafted to make data hoarding a criminal offense, noting “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.”
