Tax Smart: How AI Can Power Nigeria’s New Tax Reform


AI offers a game-changing opportunity to actualize the goals of Nigeria’s new Tax Administration Act (NTAA) 2025. By automating enforcement, identifying evasion patterns, and simplifying compliance, AI can help Nigeria expand its tax net, reduce fraud, and improve revenue collection across sectors—especially in the informal economy.

The NTAA 2025 introduces sweeping reforms to modernize tax administration, unify databases, enhance compliance, and automate dispute resolution. But without smart implementation, these objectives may remain on paper. That’s where AI steps in.

With Nigeria’s vast informal sector and complex taxpayer base, AI can analyze large volumes of unstructured data from banking transactions, property records, telecoms, and digital platforms to detect patterns of tax evasion. Machine learning can help segment taxpayers and forecast non-compliance risk, enabling targeted enforcement and reducing the cost of manual audits.

Intelligent chatbots can assist citizens and businesses in understanding and fulfilling their tax obligations, offering multilingual support tailored to regional nuances. Natural Language Processing (NLP) can simplify the Act’s legal jargon, making tax rules more accessible to the general public.

AI can also integrate seamlessly with existing systems like NIN, BVN, and CAC, enhancing taxpayer verification. Predictive analytics can help policymakers model revenue outcomes and adapt strategies in real time.

Crucially, the NTAA emphasizes transparency—AI-backed dashboards can provide real-time updates on collection targets, refunds, and administrative actions, fostering trust and accountability.

The NTAA is a bold step—but AI is the fuel it needs to run effectively. Nigeria must invest in tax-focused AI infrastructure, public-private collaborations, and capacity-building. Let’s ensure this reform delivers lasting impact. The tech is here—the time to implement is now.

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