NIGERIA SIGNS TAX AND ECONOMIC DATA MoU WITH FRANCE, RAISING SOVEREIGNTY CONCERNS

FIRS to collaborate with French tax authority on AI audits and analytics, prompting debate over national economic control.


The Federal Inland Revenue Service (FIRS) of Nigeria signed a Memorandum of Understanding (MoU) with France’s tax authority on December 10 at the French Embassy in Abuja. The agreement outlines a partnership in which France will provide Nigeria with artificial intelligence-driven audits, automated compliance tools, real-time analytics, and cybersecurity support. The government says the collaboration is intended to strengthen Nigeria’s digital tax systems and improve international tax compliance.


Under the MoU, Nigeria will share insights from its digital economy and tax systems with France, including information on transfer pricing, profit shifting, and multinational compliance practices. Government officials insist that no raw taxpayer files will leave the country, and that only sensitive aggregated data will be transmitted. They argue that this will support advanced analytics while maintaining taxpayer confidentiality.


Critics, however, warn that aggregated data can still reveal important financial patterns and provide France with visibility into Nigeria’s economic operations. Once this information leaves the country, experts note, Nigeria may lose control over key aspects of its fiscal data, potentially impacting national economic sovereignty and long-term fiscal planning.


The timing of the MoU has drawn attention, particularly as France’s influence in West Africa appears to be waning. Countries such as Mali, Burkina Faso, and Niger have increasingly resisted French economic and security involvement, creating a context in which Nigeria’s cooperation with France could be perceived as a shift in regional economic dynamics. Observers argue that Nigeria’s engagement may set a precedent for the management of sensitive national data.


Some analysts emphasize that Nigeria is fully capable of managing its own tax systems and employing domestic experts for advanced digital audits. They argue that reliance on foreign technology and analysis could compromise the country’s independence in fiscal decision-making and expose sensitive economic information to external actors.


Calls are emerging for the MoU to be paused or renegotiated to protect Nigeria’s economic sovereignty and the privacy of taxpayer information. Advocates for fiscal independence stress that Nigeria should maintain full control over its revenue systems while investing in local expertise to manage its growing digital economy.