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ActionAid International, a global human rights advocacy group, said on Wednesday that Nigeria loses $2.9 billion yearly to corporate tax waivers.

ActionAid Nigeria's Country Director, Ojobo Ode Atuluku, disclosed this at the West African Summit on Tax Treaties organised by ActionAid in Abuja. Speaking at the summit, held under the theme, “A Common Treaty Protocol: Cutting the Giveaways,” Atuluku said Ghana and Senegal have lost $2.7 billion and $200 million, respectively, to annual tax waivers. Between the three countries, she said total annual loss is $5.6 billion.

She attributed the losses to the disproportionate nature of the double-taxation agreements that African countries sign with developed countries. Excessive tax reliefs are avenues through which international businesses, large domestic corporations and individuals with high net worths deny developing countries the opportunities to retain funds that should be used to build infrastructure, Atuluku explained. She said ActionAid’s research reveals there is a crucial need to scrutinise these treaties, which have become a key source of revenue losses for African countries.

“We call on ECOWAS to take the lead in agreeing on a common protocol on tax treaties in West Africa, especially on double taxation treaties,” she said.

She also listed 13 countries that have unfavourable tax treaties with Nigeria, adding that currently, Kuwait, Mauritius and Sweden have tax treaties with Nigeria that have been signed and awaiting approval.

In attendance at the summit was Teju Somorin, President of the Chartered Institute of Taxation in Nigeria, who commended ActionAid for initiating the summit and urged for more insight into the social aspects of taxation.