By 
By Osasome, C.O
Technology at the Core of Nigeria’s Tax Reform Agenda
The Executive Chairman of the Nigeria Revenue Service (NRS), Zacch Adedeji, has said that deep integration of technology into revenue systems is critical to reforming Nigeria’s tax administration and improving compliance nationwide.
RELATED: Digital-first tax reform: Nigeria prepares for a new era in revenue collection
Adedeji made the remarks at a stakeholder engagement forum organised by the Federal Capital Territory Internal Revenue Service (FCT-IRS) in Abuja. The forum was themed “Harmonising Revenue Systems and Implementing New Tax Laws.”
Digital Systems to Drive Efficiency and Accountability
He was represented at the event by the Executive Secretary of the Joint Revenue Board, Olusegun Adesokan. Adedeji emphasised that technology will play a defining role in the successful implementation of Nigeria’s new tax laws.
According to him, digital tools will significantly enhance efficiency, transparency, and accountability. They will also reduce human interference and revenue leakages across the tax system. He urged tax authorities at sub-national levels to fully embrace the new legal and technological framework to ensure uniform compliance.
Commendation for FCT-IRS Stakeholder Engagement
Adedeji commended the FCT-IRS for convening a high-level stakeholder forum.. He described the forum as both timely and strategic, given Nigeria’s ongoing fiscal and tax reforms.
He noted that the reforms are designed to redefine tax compliance, and modernise revenue administration. Most importantly, it is intended to strengthen public finance management through harmonised systems and data-driven processes.
2025 Tax Reforms: From Manual to Digital-First Administration
Nigeria’s sweeping 2025 tax reforms is now being enforced by the NRS (formerly the Federal Inland Revenue Service). The reforms rely heavily on technology to transform tax administration from manual processes to intelligence-driven, digital-first systems.
Under the reforms, NRS is introducingg several tech-enabled mechanisms aimed at expanding the tax base, and improving compliance monitoring. Ultimately, the reforms align Nigeria’s tax regime with global digital economy standards.
Key Technological and Tax Law Changes (2025–2026)
- Digital Economy Taxation: The Nigeria Tax Act (NTA) 2025 brings digital services, intangible assets, and digital/virtual assets such as cryptocurrencies and tokens into the tax net.
- Significant Economic Presence (SEP): Non-resident companies offering monetised digital services in Nigeria must now register and pay taxes if they have a substantial Nigerian user base.
- Mandatory E-Invoicing: All VAT-registered businesses are required to adopt NRS-approved e-invoicing systems for real-time transaction reporting to curb tax evasion.
- Automated Tax Administration: The NRS is deploying data analytics and automation to handle taxpayer registration, assessment, and audits.
- Digital Compliance Enforcement: Failure to comply with e-filing requirements or to grant tax authorities access to approved digital assessment tools will attract stiff penalties.
- Targeted Tax Exemptions: Individuals earning ₦800,000 or less annually are exempt from personal income tax, while qualifying small business owners are also exempt from income tax.
What the New Rules Mean for Businesses
With the new laws in force, businesses are required to upgrade their Enterprise Resource Planning (ERP) systems. This is to ensure compliance with digital VAT reporting, income tax rules, and automated audit processes.
Experts say organisations that fail to align their internal systems with the new digital tax framework risk penalties, compliance breaches, and operational disruptions.
Towards a Smarter, More Transparent Tax System
The NRS leadership maintains that technology-driven tax administration is no longer optional. It is essential to building a transparent, efficient, and inclusive revenue system capable of supporting Nigeria’s long-term economic growth.
