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.

Federal government is still open to crypto businesses operating in the country despite the ongoing lawsuit against Binance, crypto exchange and the high-profile detention of Tigran Gambaryan, Binance executive.

Mohammed Idris, minister of Information, said Friday, that the lawsuit was part of the government’s effort to strengthen regulations, not to target specific companies.

“This is part of the effort to strengthen our laws, not to cripple anybody. We are ensuring that no one comes and operates without regulation,” Idris told the outlet.

Nigeria filed an $81.5 billion lawsuit against Binance in February, claiming the exchange crashed Nigeria’s local currency, the naira, and said that Binance owed $2 billion in back taxes as the Nigerian government continues to grapple with sensible crypto policy.

“We are ensuring that no one comes and operates without regulation,” Idris said, noting that other crypto companies in Nigeria continue to operate without facing legal challenges.

“There are other companies operating in the crypto sector in Nigeria, you don’t see them [facing charges],” he added.

Idris also highlighted concerns over the potential misuse of cryptocurrency for illicit activities, including terrorism financing, money laundering, and tax evasion.

He pointed out that the issue of illicit financial flows is a global concern, stressing the importance of international cooperation to ensure that transactions in the crypto space align with financial regulations.

“It is not just Nigeria. Internationally it’s also important to address illicit financial flows. You can’t have a huge amount of transactions that do not meet the operations of financial dealers,” Idris said.

Flutterwave, Africa’s leading payments technology company, is now enabling digital tax collections for the Federal Inland Revenue Service (FIRS), making it one of the few fintechs supporting the government in modernizing tax payments.

L-R: Mr Gbenga Badejo; Mrs. Olufunmilayo Olaniyi, Senior Vice President, Business Development, Flutterwave; Dr. Zacch Adedeji, Chairman, FIRS; Mr. Olugbenga ‘GB’ Agboola, Founder and CEO, Flutterwave and Mr Oluwabankole Falade, Chief Legal, Regulatory Affairs & Public Policy Officer.

This development allows the FIRS to leverage Flutterwave’s seamless and secure payment infrastructure to collect taxes, levies, and other payments from businesses and individuals across Nigeria.

Flutterwave’s payment technology simplifies tax payments for individuals, Small and Medium Enterprises (SMEs), and large corporations, ensuring a fast, transparent, and accessible tax payment experience.

By integrating with the FIRS, Flutterwave provides diverse digital payment options, real-time reporting and tracking, offline tax payment capabilities, and a secure payment system for Nigerians both at home and in the diaspora.

Olugbenga ‘GB’ Agboola, CEO of Flutterwave, stated: “At Flutterwave, we are committed to leveraging technology to drive efficiency and economic growth. By making tax payments easier and more transparent, we are helping to digitize government collections and support national development which is in line with our mission.”

This integration also brings key advantages, including real-time reporting and tracking of payments, diverse digital and mobile payment options, offline tax payment capabilities, enhanced transparency for both taxpayers and the FIRS, and providing Nigerians in the diaspora an avenue to seamlessly pay their taxes.

These advancements align with the commitment of the Federal Inland Revenue Service to modernize government collections and improving user experience.

Olufunmilayo Olaniyi, Senior Vice President, Business Development at Flutterwave, emphasized the company’s dedication to serving Nigerians: “Working with the public sector is pivotal to shaping the future of digital payments in Nigeria. This underscores our commitment to delivering solutions that serve Nigerians better, foster trust, and drive impactful innovation through strategic collaboration.”

With its proven track record across Africa, Flutterwave continues to play a key role in public sector digitization efforts in Nigeria.

In 2024, Flutterwave also partnered with the Economic and Financial Crimes Commission (EFCC) to establish a cybercrime research center, reinforcing its dedication to financial security and innovation.

As one of the primary fintechs facilitating government tax collections, Flutterwave remains at the forefront of financial technology solutions that enhance business operations and enable growth across Nigeria and beyond.