NRS Chairman: New Fiscal Legislation Requires Digital Infrastructure for Success
Dr. Zacch Adedeji, the Executive Chairman of the Nigerian Revenue Service (NRS), has identified technology as the cornerstone for the effective implementation of Nigeria’s newly enacted tax laws. Delivering the maiden convocation lecture at the Federal Polytechnic, Ayede, in Oyo State on Wednesday, Adedeji emphasized that while the new legislation represents a historic legal milestone, its practical success depends entirely on a digital transition.
Transitioning from Manual Tasks to Tax Intelligence
The NRS boss described the current legislative changes as the most significant restructuring of Nigeria's fiscal framework in five decades. He argued that the new laws are designed with an inherent assumption of a digital ecosystem, featuring reliable taxpayer identification, integrated institutional data, and automated enforcement processes.
"These laws are built for a digital environment," Adedeji stated. "They cannot function properly in a manual, fragmented, paper-based system. Without technology, the laws remain aspirational; with technology, they become operational."
He further noted that the shift marks the end of "tax collection" as a manual administrative task and the beginning of "tax intelligence," where data-driven insights replace human discretion.
Addressing Structural Challenges
According to Adedeji, the Nigerian tax system faces four fundamental hurdles: infrastructure, skills, trust, and resistance. He maintained that upgrading the system for a digital environment is the primary solution to these challenges. By reducing human discretion which he noted can breed inconsistency and mistrust technology fosters a more transparent and predictable tax administration.
The Chairman highlighted that a digital-first approach ensures that who is registered, assessed, or audited is determined by data rather than individual choice, thereby enhancing the legitimacy of the tax authority and encouraging voluntary compliance.
Expanding the Tax Base Without Rate Increases
A significant highlight of the lecture was the prospect of increasing national revenue without placing additional burdens on citizens. Adedeji asserted that technology allows the NRS to improve visibility into previously unseen economic activities.
“By improving visibility and bringing previously unseen economic activity into view, technology levels the playing field,” he explained. “When compliance broadens, the pressure on the existing base reduces, fairness improves, and legitimacy grows. This is how modern tax systems grow revenue sustainably.”
Stakeholder Endorsement
The lecture, titled "The Role of Technology in Implementing Nigeria's New Tax Laws: Challenges, Prospects, and Implications for National Development," received commendation from top government officials. The Speaker of the House of Representatives, Dr. Tajudeen Abass, represented by Senator AbdulFatai Buhari, praised Adedeji’s leadership in re-engineering Nigeria’s tax architecture.
Similarly, the Rector of the institution, Dr. Taofeek Abdul-Hameed, and the Governing Council Chair, Yakubu Datti, lauded the NRS Chairman for his vision in aligning Nigeria’s revenue collection with global best practices.
As Nigeria embarks on this comprehensive fiscal overhaul, the emphasis on technology-driven "tax intelligence" signifies a departure from traditional revenue collection methods. The success of the new tax laws will ultimately be measured by the government’s ability to deploy robust digital infrastructure that can sustain economic growth while ensuring equity and transparency within the tax system.
