Exchange of information (EOI) standards are at the centre of efforts to curb tax evasion and illicit financial flows. The key issue for developing countries is whether offshore information can be used to strengthen domestic enforcement. Nigeria is a revealing case, because it combines ambitious formal commitments with a federal tax system marked by uneven subnational capacity and resource constraints.
We examine under what conditions a lower-middle-income federal country can convert offshore data into enforceable tax claims. This provides the first systematic, empirically grounded assessment of Nigeria’s implementation of EOI standards, particularly the Common Reporting Standard (CRS) automatic exchange of information (AEOI) – its costs, benefits, and structural constraints.
“The central challenge is no longer access to offshore information, but the capacity to use it effectively for domestic enforcement, especially in decentralised tax systems.”
