The Country Director,
Actionaid, Nigeria, Dr Hussein Abdul, has urged the Federal Government to curb its losses through transfer pricing,  mispricing, tax avoidance and tax manipulation.
Abdul told journalists in Abuja that the money lost yearly in the extractive sector was almost equal to the nation’s annual budget.
The country director said that in solving the problem of illegal financial outflow from the oil and gas sector, Nigeria needed to put in place a strong accounting policy.
According to him, the occurrence is a major challenge hindering the nation’s development, especially being the largest economy in Africa and extractive driven.
“As a major exporter of crude and gas in Africa, it is a major challenge. Currently, what Nigeria is losing through transfer pricing and mispricing, tax avoidance and tax manipulation is quite huge.
“The money we lose yearly is almost equal to our annual budget. This is quite unacceptable because this is the money that would have been invested in the lives of the people.
“This money would have gone a long way to improve our infrastructure and ensure better education and health services.
“Nigeria does not know how much crude it exports. The information we get is based on what the multinationals tell us.
“We must institute a strong governance system that is internally accountable and not externally accountable.
“What that means is that if a multinational company is coming to Nigeria, it must be prepared to remain independently accountable to the Nigerian system.
“Profit is not declared based on an accumulated income from the branches it has all over the world. It should be based on what they are making from Nigeria alone.’’
Abdul urged the government to improve the economic environment and infrastructure, especially electricity to be able to attract the right kind of investment that would grow the economy.
“What motivates investors is the economic environment. All the major tax concessions and holidays these corporate bodies enjoy need to be abrogated.
“Because these concessions are being manipulated on a daily basis and therefore, we do not get the right taxes from these corporations
“Tax is not even a good incentive to draw foreign investment. For instance, a company will come to Nigeria, and is given tax concessions and holiday, maybe five years.
“Then the company runs for five years, enjoys the holiday and after that period, the company gets sold to another body, who changes its name, reapply for holiday, gets it, it expires, sells it again.
“That practically means that the tax you are ordinarily supposed to be collecting throughout that period are not paid.
“There are telecoms companies in this country that have changed names several times. Ask yourself why and that is the reason,’’ he said.
Our correspondent reports that during the recently held World Economic Forum, former President of South Africa, Mr Thabo Mbeki, announced that Africa loses over 50 billion dollars yearly through illegal transactions.