Following the loss of revenues and underreporting of taxes for the development of Nigeria, the Chartered Institute of Taxation of Nigeria (CITN) has introduced the use of artificial intelligence (AI) in tax administration.
In his keynote address at a maiden ICT summit on taxation in Abuja, the pioneer Director General of the National Space Research and Development Agency (NARSDA) and senator of the Federal Republic of Nigeria, Professor Robert Ajayi Boroffice, said that AI-driven tax compliance systems analyse vast amounts of tax data in real-time, identifying inconsistencies, fraudulent activities, and underreporting. By using machine learning, AI can detect tax fraud and evasion patterns more accurately than traditional audits.
“Countries like the United States (IRS AI system) and the UK (HMRC AI-driven audits) are already leveraging AI to increase compliance and detect tax fraud more efficiently.
“Taxation is not just about revenue collection; it is a fundamental pillar of economic governance. A well-designed tax system fosters business confidence, encourages compliance, and ensures that governments have the necessary resources to invest in infrastructure, healthcare, education, and public services.
“We are living in an era where technology is not just an enabler but a driving force reshaping industries, governments, and economies. In fact, technology defines the power of a nation. Robotics and AI have already revolutionised healthcare, finance, and manufacturing, and now, they are redefining tax administration making it more efficient, transparent, and fraud-resistant.
“In the digital age, leveraging technology to build a smart, efficient, and fair tax system is no longer optional—it is imperative,” he said.
Before he declared the workshop open, the President/Chairman of Council, Mr. Samuel Agbeluyi, noted that technology is no longer a luxury; it is a necessity.
According to him, countries that have embraced digital tax reforms are reaping the benefits of increased revenue mobilisation, reduced tax evasion, and improved ease of doing business. Nigeria, he said, cannot afford to be left behind.
“Traditional tax administration is faced with a number of challenges. For decades, tax administration has relied on manual processes, paperwork-heavy systems, and traditional audits. These methods have posed significant challenges, including tax evasion and fraud. Slow and inefficient processes, high administrative costs, limited data insights,” he said.
He stated that there is a need for a smart tax infrastructure.