Redefining Nigeria’s Fiscal Future: How a Technology-Driven Tax Reform Agenda Aims to Deliver $3 Billion Monthly Revenue At the 27th Annual Tax Conference of The Chartered Institute of Taxation of Nigeria (CITN) held in Abuja, a clear message resonated from the country’s fiscal leadership: Nigeria’s future rests on the shoulders of a modern, technology-enabled tax system. Backed by President Bola Ahmed Tinubu’s fiscal reform agenda, the government is charting a bold course to generate up to $3 billion in monthly tax revenues—anchored on digital compliance, transparent governance, and stakeholder collaboration. The Vision: Taxation as a Development Tool, Not Just Revenue Representing the President at the event, Dr. Doris Nkiruka Uzoka-Anite, Minister of State for Finance, emphasized a critical paradigm shift: taxation is no longer to be viewed solely as a revenue-generating mechanism. “Taxation is more than revenue; it is a tool for development,” she stated, reinforcing that fiscal policy must align with inclusive economic aspirations. This aligns with the global consensus that effective taxation, when designed equitably and administered transparently, fosters public trust, supports infrastructure, and promotes economic inclusion. Technology at the Core of Reform Key to the transformation is technology and data analytics, which the government is now leveraging to modernize compliance systems, enhance taxpayer services, and curb leakages. The reforms address endemic challenges such as: The multiplicity of taxes Overlapping regulatory mandates Low compliance and narrow tax base Weak coordination across federal, state, and local governments A unified tax database is now in development to integrate federal and sub-national systems, enabling joint audits, seamless taxpayer tracking, and real-time data validation. This is a foundational infrastructure that could redefine Nigeria’s tax ecosystem. Execution: The Litmus Test for Success While landmark legislations like the Economic Stabilization Bill and efforts by the Presidential Committee on Fiscal Policy and Tax Reforms have laid the groundwork, the Minister warned that execution remains the critical success factor. “Policies must translate into measurable outcomes,” Uzoka-Anite stressed, citing Nigeria’s 2024 $6.8 billion balance of payments surplus and $16 billion trade surplus as signs of economic rebound. However, with inflation still stubborn and trust in tax authorities low, the execution of reforms must be people-centered and service-driven. The Subnational Lens: Fiscal Federalism in Action The conference also spotlighted the crucial role of state governments in reform implementation. Governor Caleb Mutfwang of Plateau State reminded the audience that “poverty cannot be taxed”—urging a focus on wealth creation before taxation. Governor Lucky Aiyedatiwa of Ondo State gave a sobering assessment: despite efforts, Nigeria’s tax-to-GDP ratio remains under 11%—one of the lowest globally, while inflation hit 33.3% in 2024, and FDI dropped to $29.8 million in Q2 2024. He, however, lauded the proposed progressive tax regime for 2025, including: N800,000 personal income tax exemption threshold Reduced development levies for low-income earners Aiyedatiwa called for: Domestication of federal tax laws Modernization of state tax infrastructure Adoption of digital tools Public-private partnerships (PPP) for implementation Notably, states are now gaining visibility in international tax policy decisions, including double taxation agreements (DTAs)—a significant departure from past practice. Tackling Data Deficit and Trust Gap A major hurdle identified was the absence of credible and integrated taxpayer data. Stakeholders pointed out the contradiction of asset declarations versus the availability of verified data. For instance, “We own eight houses. Isn’t our data in the system?” one speaker asked, underscoring the crisis of confidence in the current data infrastructure. This has propelled the push for a shared tax data system to enhance transparency, reduce evasion, and provide granular insight into property, business, and informal sector earnings. Tax Equity, Harmonized Enforcement, and National Growth The conference framed the future of Nigeria’s tax system within the context of global best practices. Experts proposed a national tax strategy focused on: Reducing compliance costs Harmonizing enforcement between agencies Strengthening fiscal autonomy of states Bringing informal sectors into the tax net Respecting and restructuring Government-Mandated Operations (GMO) taxes Critically, panelists reiterated that service delivery—not just policy sophistication—will define the success of the reforms. Citizens must see the impact of taxes in roads, schools, healthcare, and digital services. Conclusion: From Promise to Practice The CITN conference was more than a policy dialogue—it was a call to action. Nigeria’s tax future hinges not just on technology and reform, but on integrity, execution, and inclusivity. As Uzoka-Anite reminded tax professionals, “You are the custodians of Nigeria’s tax equation. Challenge assumptions. Shape policies. Drive growth.” The ambition to achieve $3 billion in monthly revenue is bold, but attainable—if stakeholders act collaboratively, openly, and accountably. The window to reform is open; the time to deliver is now. Olatunji Abdulrazaq CNA, ACTI, ACIArb(UK) Founder/CEO, Taxmobile.Online