Reported by: Oahimire Omone Precious | Edited by: Oravbiere Osayomore Promise.
The Economic and Financial Crimes Commission (EFCC) and the Edo State Internal Revenue Service (EIRS) have entered into a formal collaboration agreement aimed at tackling tax fraud, evasion, and non‑remittance of taxes by individuals and corporate entities operating in the state. The decision was reached on Thursday, May 7, 2026, during a courtesy visit by the Chairman of the Edo State Internal Revenue Service, John Odior, to the Benin Zonal Directorate of the EFCC. The visit marked a significant step toward deepening the relationship between the two organisations and leveraging the EFCC’s investigative powers to strengthen the state’s revenue generation capacity.
During the meeting, Odior disclosed that his primary objective was to explore areas of collaboration, noting that the partnership with the anti‑graft agency had become imperative to bring into the tax net those who deliberately evade taxes, those who pay negligible amounts, and those who have never been captured in the system. “When you arrest a suspect, ask for evidence of their tax payment or tax clearance. You can write to us to find out whether the person has been paying tax or not, and we shall provide you with the information,” Odior told the EFCC team. He explained that such information sharing would not only help the Commission in its investigations but would also expand the state’s tax base and improve revenue generation, which is crucial for funding public infrastructure and social services.
Odior’s call is rooted in a persistent challenge faced by state revenue authorities across Nigeria: a low tax compliance rate, widespread under‑declaration of income, and the informal sector’s near‑complete absence from the tax net. In Edo State, despite ongoing reforms and digitalisation of tax collection, a significant portion of eligible taxpayers either fail to register or consistently underpay. The EIRS boss argued that the EFCC, through its financial crime investigations, is uniquely positioned to uncover hidden assets, undeclared income, and fraudulent tax practices. By cross‑referencing data from bank accounts, property acquisitions, and business turnovers, the EFCC can identify individuals and companies whose lifestyles and transactions are inconsistent with their tax filings.
Responding, the Acting Zonal Director of the Benin Zonal Directorate, Deputy Commander of the EFCC, DCE Sa’ad Hanafi Sa’ad, warmly welcomed the initiative and reaffirmed the Commission’s readiness to work with the EIRS. Sa’ad disclosed that the EFCC already operates a dedicated Tax Fraud Section that deals specifically with issues of tax evasion, false declarations, and other tax‑related offences. “The Commission recognises the importance of tax as a critical source of revenue for the government, and we ensure that those who try to evade tax payment face the consequences of their actions,” he said. He assured Odior that the EFCC’s doors would always be open to the EIRS, adding: “You can call on us anytime you have anything to share with us, and we shall respond accordingly.”
The collaboration agreement comes at a time when the Federal Government and state governments are under immense pressure to increase internally generated revenue (IGR) following the removal of fuel subsidies and the consequent reduction in federal allocations. States are now forced to look inward, and tax enforcement has become a priority. Edo State, under Governor Godwin Obaseki, has invested heavily in technology‑driven tax administration, including the automation of tax registration, filing, and payment systems. However, enforcement remains a weak link, and the partnership with the EFCC is expected to bridge that gap.
The EFCC’s Tax Fraud Section, which operates within the Commission’s Criminal Investigation Department, has in the past successfully prosecuted individuals and companies for tax fraud, including cases involving fake tax clearance certificates and conspiracy to defraud the government through under‑remittance of Pay‑As‑You‑Earn (PAYE) taxes. By receiving real‑time intelligence from the EIRS, the EFCC can target high‑net‑worth individuals and corporations suspected of evading taxes, using its powers under the Money Laundering (Prohibition) Act and the Corrupt Practices Act to freeze accounts and compel disclosure of financial records.
The collaboration is also expected to send a strong deterrent signal to tax evaders in Edo State. Previously, many businesses and wealthy individuals viewed tax evasion as a low‑risk offence, with penalties rarely enforced. With the EFCC now actively interested, the risk of criminal prosecution, asset forfeiture, and imprisonment has increased substantially. The partnership may also extend to e‑commerce platforms, real estate developers, and professional service providers, sectors where tax evasion is notoriously high.
Both parties agreed to set up a joint task force that will meet quarterly to review progress and share intelligence. The EIRS will provide the EFCC with access to its database of registered taxpayers and defaulters, while the EFCC will share findings from its investigations that indicate possible tax evasion. Additionally, the EFCC will train EIRS investigators on forensic accounting and financial analysis, enhancing their ability to detect complex tax fraud schemes.
The collaboration has been welcomed by civil society organisations and business groups in Edo State. The Benin Chamber of Commerce, Industry, Mines and Agriculture (BECCIMA) issued a statement urging members to ensure full compliance with tax laws, noting that the partnership would create a level playing field by penalising those who gain unfair advantage through evasion. However, some private sector operators expressed concerns about potential abuse of power and called for safeguards to protect innocent taxpayers from harassment.
The EFCC has assured that the collaboration will be conducted within the bounds of the law and with respect for taxpayers’ rights. The Commission reiterated that its involvement in tax matters would focus on criminal evasion, not civil disputes, and that it would work closely with the EIRS to ensure that only cases with sufficient evidence are pursued. As part of the agreement, a memorandum of understanding is expected to be signed in the coming weeks, formalising the terms of the collaboration and establishing a clear protocol for information exchange and joint operations.
With this new alliance, tax evaders in Edo State can no longer rest easy. The EFCC, armed with the EIRS’s intelligence and its own investigative powers, is now watching. And for the first time, failing to pay your taxes could land you in the same dock as money launderers and fraudsters.
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