Zacch Adedeji, who serves as the Executive Chairperson of the Nigerian Revenue Service (NRS), underscored the importance of technology as a vital component for the successful application of the new tax laws in Nigeria. He made these remarks on Wednesday while presenting the inaugural convocation lecture at the Federal Polytechnic, Ayede, located in Ogo-Oluwa Local Government Area of Oyo State.
In his statement issued through his Technical Assistant on Print Media, Sikiru Akinola, Mr. Adedeji identified key challenges facing taxation in Nigeria, such as inadequate infrastructure, skill shortages, lack of trust, and resistance to reform. During his lecture titled ‘The Role of Technology in Implementing Nigeria’s New Tax Laws: Challenges, Prospects, and Implications for National Development,’ he mentioned that these obstacles would be addressed through the imminent digital transformation of the country’s tax system.
“Recently, Nigeria has introduced a new set of tax laws, marking a historic overhaul of the tax framework, the first of its kind in half a century. While discussions typically categorize these adjustments as legal reforms, this perspective is somewhat narrow,” he explained.
According to him, “These new regulations extend beyond mere modifications of rates, terminologies, or administrative authorities. They signify a radical transformation in the operational dynamics within the tax framework. This signifies the transition from traditional manual tax collection to a more intelligent, technology-driven approach.”
He further stated, “A closer reading of these laws reveals profound prerequisites, such as the need for reliable taxpayer identification, inter- institutional data integration, traceable transactions, automated processes, and scalable enforcement measures.”
Adedeji emphasized that these new laws are designed for a digital interface and cannot perform effectively in the existing, fragmented, manual systems. “The clear message is that without technological support, these laws will remain a mere aspiration. Conversely, with the right technology in place, they can be realized,” he added.
“The transition is crucial to our mandate at the Nigeria Revenue Service as we adapt to this new legal framework. Historically, tax management has depended significantly on human judgment regarding registration, assessment, auditing, and penalization,” he noted further.
“Excessive reliance on judgment can lead to inconsistencies, fostering mistrust and prompting non-compliance,” Mr. Adedeji cautioned.
On additional prospects, he explicated that elevation of infrastructure, bolstering capacity, maintaining trust, and managing resistance would allow technology to fulfil roles that policy alone cannot.
“An essential benefit of a technologically advanced tax administration is the capacity to increase the taxpayer base without necessarily raising tax rates. This is particularly significant in a society where citizens tend to feel the weight of excessive taxation,” he said.
By enhancing visibility and revealing previously unaccounted economic activities, technology plays a crucial role in equitably balancing the tax landscape. “As more individuals comply, the demands on the existing taxpayer base lessen, leading to improved fairness and growing legitimacy, which is how contemporary tax systems can sustainably increase revenue,” he concluded.
During the event, Speaker of the House of Representatives, Tajudeen Abass, who was represented by AbdulFatai Buhari, encouraged the graduates to become exemplary representatives of their institution. He urged them to pursue continuous learning and commended Mr. Adedeji for spearheading innovations within Nigeria’s tax administration.
Yakubu Datti, the chairperson of the governing council of the institution, praised Adedeji for guiding the transformation of Nigeria's tax infrastructure.
The institution's Rector, Taofeek Adekunle Abdul-Hameed, urged the graduating students to take inspiration from Mr. Adedeji, who began his professional journey from a polytechnic background.
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