Nigeria has decided to move ahead with a new tax partnership with France despite concerns over data security and national sovereignty.
The deal gives Nigeria access to AI-powered audits, automated compliance systems, real-time economic analytics, and cybersecurity tools. However, it has raised questions about the potential exposure of sensitive economic data and the possible impact on Nigeria’s fiscal independence.
Data Sharing and Economic Concerns
Under the agreement, Nigeria will share aggregated, anonymised economic information, including insights on multinational companies, transfer pricing, and profit-shifting practices, although officials have emphasised that no raw taxpayer files will leave the country.
Nevertheless, critics caution that even aggregated data could reveal key financial patterns, giving France insight into Nigeria’s economy and potentially affecting the country’s control over its fiscal policies.
One post on X stated: “The truth is, this data can reveal key financial patterns and give France visibility into our economy. Once it leaves, we can’t get it back, putting our national economic sovereignty at risk.”
The commentary added: “This MoU could compromise our control over our revenue system, expose sensitive economic data, and weaken Nigeria’s fiscal independence. We are big enough to manage our own tax system and employ our own experts. This deal should be paused or renegotiated to protect Nigerian taxpayers and safeguard the sovereignty of our economy.”
Another observer noted: “Allowing France into our tax system is effectively giving them a dashboard on our economy,” highlighting the risks of foreign access to sensitive financial information.”
France’s Changing Role in West Africa
The MoU comes amid a broader shift in France’s engagement in West Africa. Since 2022, Paris has ended major counterterrorism missions in Mali, Burkina Faso, Niger, Chad, and Côte d’Ivoire, and closed bases in Senegal amid rising anti-French sentiment.
The country now largely limits its involvement to training, intelligence-sharing, and targeted support requested by regional governments.
Benin Coup and Regional Security Cooperation
Deepening Nigeria–France Ties
Following the incident, French President Emmanuel Macron pledged to strengthen security and counter-terrorism cooperation with Nigeria at the request of President Bola Tinubu.
This move, now adopted by France in its dealings with African nations, reflects a strategic shift toward consolidating bilateral cooperation across both economic and security domains, rather than the country’s previous focus on military posturing.
Strategic Implications
Ultimately, the MoU is viewed as part of France’s effort to reassert influence in West Africa, at a time when the United States has also shown growing interest in the region.
Observers however caution that Nigeria must ensure the partnership safeguards its economic sovereignty and retains full control over sensitive fiscal data.
