The Chartered Institute of Taxation of Nigeria (CITN) is championing the adoption of artificial intelligence (AI) in tax administration in a bid to combat revenue leakage and improve tax compliance
The initiative aims to modernize Nigeria’s tax system, curb tax evasion, and enhance revenue generation for national development.
Speaking at the inaugural ICT Summit on Taxation in Abuja, Professor Robert Ajayi Boroffice, a senator and the pioneer Director General of the National Space Research and Development Agency (NARSDA), emphasized the transformative role of AI in tax administration.
He highlighted how AI-driven compliance systems can analyze vast amounts of tax data in real time, detect inconsistencies, and identify fraudulent activities with greater precision than traditional audits.
Professor Boroffice pointed out that countries like the United States and the United Kingdom have successfully integrated AI into their tax systems, allowing for more efficient fraud detection and increased compliance. He stressed that taxation is not just a means of revenue collection but a fundamental pillar of economic governance.
A well-structured tax system, he noted, fosters business confidence, encourages compliance, and ensures governments have the resources to invest in infrastructure, healthcare, and education.
He further stated that AI and robotics have already transformed industries such as healthcare, finance, and manufacturing, and tax administration must follow suit.
With technology reshaping economies worldwide, he called for Nigeria to embrace AI-driven solutions to build a more transparent and fraud-resistant tax system.
CITN President and Chairman of Council, Mr. Samuel Agbeluyi, echoed this sentiment, emphasizing that technology is no longer a luxury but a necessity.
He noted that countries implementing digital tax reforms have seen increased revenue mobilization, reduced tax evasion, and improved ease of doing business. According to him, Nigeria must not lag in adopting modern tax administration techniques.
Traditional tax systems, which rely heavily on manual processes, paperwork, and outdated auditing methods, have long posed challenges such as inefficiency, high administrative costs, and limited data insights.
Agbeluyi stressed the urgent need for Nigeria to develop a smart tax infrastructure that leverages AI to enhance efficiency and transparency.
The summit underscored the importance of embracing technological advancements to drive a fairer, more effective tax system, positioning Nigeria for economic growth and stability.
