The Nigerian Revenue Service (NRS) Chairman, Zacch Adedeji, yesterday emphasised the importance of technology in the implementation of the new tax laws.
Speaking at the maiden convocation lecture of the Federal Polytechnic Ayede in Oyo State, he listed some of the most fundamental challenges confronting taxation as infrastructure, skills, trust and resistance. According to him, each of the challenges will be addressed with the imminent upgrading of the tax system for a digital environment.
Adedeji said: “Nigeria has recently enacted a new set of tax laws, representing the most significant restructuring of our fiscal legislation in 50 years. “While public conversation often frames these changes as legal reforms, and that is true, it is also an incomplete picture.
“These laws are not merely changing rates, definitions, or administrative powers. “They are quietly redefining how authority operates within the tax system. “This is a complete structural overhaul, signalling the end of tax collection as a manual task and the beginning of tax intelligence.
“If you read the new laws carefully, you will notice a subtle but profound assumption woven throughout their fabric. “They presuppose the existence of reliable taxpayer identification, integrated data across institutions, traceable transactions, automated processes, and scalable enforcement.” The agency chief added: “These laws are built for a digital environment. They cannot function properly in a manual, fragmented, paperbased system.
“The implication is clear: without technology, the laws remain aspirational. With technology, they become operational. “This transition is central to the mandate of the Nigeria Revenue Service as we implement this new legal framework.
Historically, tax administration relied heavily on human discretion over who is registered, who is assessed, who is audited, and who is penalised. “While discretion is not inherently evil, excessive discretion creates inconsistency, which in turn breeds mistrust and drives noncompliance.”
He said technology plays a big role in expanding the tax base. Adedeji said: “One of the most important prospects of a technology-driven tax administration is the ability to expand the tax base without increasing tax rates.
“This matters deeply in a society where citizens already feel overburdened. “By improving visibility and bringing previously unseen economic activity into view, technology levels the playing field. When compliance broadens, the pressure on the existing base reduces, fairness improves, and legitimacy grows. This is how modern tax systems grow revenue sustainably.
