E-Financial
Reps Say Banks Evade Taxes in Billions
House of Representatives Committee on Finance, probing tax remittances, tax assessments and payments by banks, has accused some Nigerian banks of inflating their operating costs to reduce their taxes.
The lawmakers said that the banks are making false declarations and distorting information in attempt to mislead or confuse the Committee as balances reported in the published audited accounts of some of them showed huge variation with the figures submitted to the committee.
Abdulmumin Jibrin, Committee chairman said that his committee found out that data submitted to the CBN in the banks’ monthly returns on the same issues were different from what they presented the Committee for investigation.
According to Jibrin Committee was not making unsubstantiated comments, as the documents submitted by the banks were analysed with capacity support from the United Kingdom’s Department for International and Development (DFID), National Assembly Budget and Research Office (NABRO) and reputable professionals in the industry in conducting the investigations.
“Preliminary findings show a poor quality of returns by the banks, discrepancies in data submitted, outright refusal to present documentary evidence, blanket violations of existing laws, self exemption from existing rules, false declaration, manipulation and distortion of information among others” Jibrin added
The Committee chairman said that “These despicable acts of gross misconduct clearly depict the unscrupulous and roguish character of some banks and their Chief Executive Officers. For the Committee on Finance, this is unacceptable.
“For instance, balances reported in the published audited accounts of some banks show huge variance with the figures submitted to the Committee. The data submitted to the CBN in their monthly returns on the same issues were found to be different from what was tendered before the Committee.
“Even more embarrassing are the inconsistencies and huge variances in some data provided in different pages of documents submitted, thus leaving the committee to conclude that many banks blatantly engage in the creative accounting technique of inflating their operating costs to reduce their exposure to taxes.
“Furthermore, some banks have also created exemption rules for themselves in total disregard for the provisions of extant tax laws, particularly violations of the stamp duty, withholding tax and VAT acts.
“Some chief executives deliberately refused to sign the templates, obviously evading presentation of the documents under oath, in line with legislative procedure. Similarly, key information and data were omitted.
“Such data include details of staff PAYE and utilities with tax implications, etc. There are also many cases of late remittances or outright failure to remit money collected on behalf of government.
“Generally, returns made so far by the banks are incomplete, as the order of presentation was contrary to the guidelines provided in the template. Clearly, this is aimed at misleading the committee.
“Documentary evidence requested was also provided in a haphazard manner.”
According to the committee Chairman, of the 21 banks under scrutiny, only six have supplied information requested, though with certain queries to answer.
On the other hand, he said against banks’ tradition of attention to details, 15 banks suddenly found it convenient to provide poor and incomplete documentation.
“It is obvious that over the years, government has lost billions of naira in fraudulent and underhand dealings corruptly designed by some banks to evade tax.
“This is in addition to being massively and callously shortchanged by banks saddled with the responsibility of collecting and remitting taxes,” he noted.
The committee chairman said it should be of concern to Nigerians that the government continues the yearly ritual of domestic borrowing to balance its budget deficit while the deposit banks continue to manipulate the situation to the detriment of the private and real sectors.
His words: “This domestic borrowing has become a bazaar for many banks, which provide such funds at outrageous interest rates and care less about the implication to the private and real sector, both of which continue to struggle to get the crumbs at a very high cost.
“Domestic borrowing by government has denied the private sector access to affordable funds to grow their businesses and in the process generate employment and create wealth.
“Yet again, some reprobate banks are involved in the criminal act of converting the huge funds in dormant accounts into profits, even with known and accessible next of kin.
“Why should they not pay their taxes in full and remit in full and promptly what they collect on behalf of government?”.
Jibrin said at the end of the investigation, the committee intends to examine various extant tax laws, introduce new clauses or make amendments where necessary to strengthen the country’s tax system and block leakages.
“Chief executives of such Banks must sign the templates and complete their outstanding checklists within 48 hours to set the stage for the last round of engagement between the Committee and the banks,” he said, adding: Between September 23 and 27, the chief executive o fficers of the banks must appear in person to defend their templates in a technical session before the committee.”
The National Insurance Commission (NAICOM), has signed a Memorandum of Understanding (MoU) with the Bureau of Public Procurement (BPP) for collaboration and strengthening of the insurance industry, in the area of public procurement processes.
The Commissioner for Insurance, Olusegun Ayo Omosehin, welcoming the Director-General of BPP, Adebowale Adedokun, and his delegation to NAICOM for a working visit, during which the agreement was signed, highlighted the role of NAICOM as the statutory regulator charged with supervising, regulating and promoting the growth of Nigeria’s insurance industry.
He further stated that NAICOM’s current reform priorities include policyholder protection, regulatory capacity building, legal modernisation, recapitalisation, and increasing insurance penetration.
He emphasised that the collaboration would reinforce the principles of public procurement and insurance practice in Nigeria. He noted that achieving President Bola Ahmed Tinubu’s vision of transforming Nigeria’s economy into a one-trillion-dollar economy required strong inter-agency cooperation.
He stressed that the commission’s reform objectives could not be fully realised without strategic collaboration with agencies such as BPP. The Commissioner further disclosed plans to establish a platform to monitor and verify insurance coverage for public procurement items and assured that insurance operators would strictly adhere to established rules and standards.
In his remarks, the Director-General of BPP, Adedokun, commended the ongoing transformation in the insurance industry, describing the Commission’s environment as serene and reflective of its readiness to support the Federal Government’s economic growth agenda.
Adedokun, welcomed the partnership and highlighted implementation as the critical next phase: “Signing MoU is only the beginning — what matters is delivery. BPP has moved to a fully digital submission model to speed approvals and reduce opportunities for corruption”, he stated.
Binance, the world’s largest cryptocurrency exchange, has reported a 96 per cent drop in direct exposure to illicit activities between January 2023 and June 2025, underscoring its commitment to regulatory excellence and user safety amid Nigeria’s growing digital finance sector.
Binance
The exchange highlighted investments in a robust compliance framework, including over 580 global compliance professionals and 970 staff in related roles, advanced transaction monitoring, stringent Know Your Customer (KYC) protocols, and anti-money laundering (AML) systems.
These measures align with evolving regulations across key markets, including Nigeria, where crypto adoption surges despite Central Bank of Nigeria (CBN) guidelines.
Binance’s Chief Compliance Officer, Noah Perlman, said: “At Binance we’ve built a system that doesn’t just react to threats, it anticipates them. A 96% reduction in illicit exposure is a testament to our infrastructure and the 1,500+ professionals working behind the scenes to protect our 300M users.”
Key achievements include a 96.8 per cent plunge in sanctions-related exposure—from 0.284 per cent in January 2024 to 0.009 per cent in July 2025.
In 2025 alone, Binance responded to over 71,000 law enforcement requests, helping seize more than $130 million (over ₦200 billion) in illicit funds.
Collaborations with agencies like Europol, DEA, UK’s NCA, and national cybercrime units have dismantled ransomware groups, darknet markets, and trafficking networks.
Binance co-CEO Richard Teng added: “Our mission has always been to increase the freedom of money, but that freedom is only sustainable if it is built on a foundation of trust. By integrating compliance into our product DNA, we are proving that the world’s largest exchange can also be the most secure.”
The platform engages regulators and policymakers to shape balanced rules supporting innovation while prioritising transparency and financial integrity. Since 2017, Binance has served over 300 million users, publishing regular compliance updates to build trust.
Industry watchers note Binance’s efforts resonate in Nigeria, where crypto trading volumes exceed $50 billion annually, but challenges like fraud and regulatory scrutiny persist. The exchange’s progress could bolster confidence as the CBN refines fintech policies.
Binance reaffirmed its dedication to a safer crypto ecosystem through ongoing investments and partnerships.
Nigeria’s non-oil tax collections posted robust growth in the first nine months of 2025, with Value Added Tax (VAT) rising 34 per cent to ₦6.4 trillion and Company Income Tax (CIT) jumping 48 per cent to ₦7.72 trillion, bolstering federal revenue amid oil price volatility.
NBS
Data from the National Bureau of Statistics (NBS) showed VAT climbing from ₦4.77 trillion in 9M’24, reflecting stronger domestic consumption and imports. Quarterly trends indicated a slight 1.4 per cent dip to ₦2.03 trillion in Q2’25 from ₦2.06 trillion in Q1’25, followed by a 10.66 per cent rebound to ₦2.28 trillion in Q3’25—a 28.1 per cent year-on-year gain.
In Q3’25, local VAT hit ₦1.12 trillion, foreign VAT ₦680.23 billion, and import VAT ₦479.79 billion. Sectorally, Administrative and Support Services led with 89.28 per cent quarter-on-quarter growth, trailed by Arts, Entertainment and Recreation (82.49 per cent) and Human Health (32.4 per cent). Real Estate contracted sharply by 51.33 per cent. Manufacturing dominated contributions at 25.89 per cent, followed by Information and Communication (18.77 per cent) and Mining/Quarrying (14.85 per cent).
CIT followed suit, surging from ₦5.22 trillion in 9M’24. It stood at ₦1.98 trillion in Q1’25, leaped 40 per cent to ₦2.78 trillion in Q2’25, and grew 5.7 per cent to ₦2.96 trillion in Q3’25—a 67.19 per cent year-on-year rise. Domestic CIT reached ₦1.21 trillion in Q3, while foreign CIT hit ₦1.75 trillion, underscoring multinational firms’ role.
Economists attribute the uptick to improved tax administration, digital tracking, and post-reform consumption, though sectoral disparities signal real estate headwinds. The gains support President Tinubu’s revenue diversification drive, reducing oil dependency as global crude fluctuates.
NBS data highlights non-oil taxes’ potential to fund infrastructure and social programmes, with analysts eyeing sustained momentum into 2026.
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