Abstract

Nigeria, a host to almost all the MNCs in the world, has continued to experience a significant loss in revenue through profit shifting techniques, which have increased public debt from N8.32 trillion in September 2013 to N36.3 trillion as at May 2021. The study aimed at examining the impact of transfer pricing on revenue generation and debt profile in Nigeria. Other objectives of this paper are to review the adequacy of the transfer pricing regulations regarding revenue generation, as well as the debt profile. It uses a qualitative research methodology relying on document review for analysis and interpretation to give more insight into transfer pricing regulation in Nigeria. Findings showed that the revised transfer pricing regulations pose some challenges that should be looked at, and also that debt servicing has denied Nigeria infrastructural development. The study recommended that the Federal Inland Revenue Service should issue a statement for clarity of purpose to avoid conflict that may arise from implementing transfer pricing regulations 2018, and also, for debt/revenue ratio to be analyse before loans are taken.

Key words: Transfer pricing, debt profile, debt servicing, multinational companies, Nigeria.