From Issac Anumihe, Abuja
To combat revenue losses and underreporting of taxes, the Chartered Institute of Taxation of Nigeria (CITN) has emphasised the need for artificial intelligence (AI) adoption in tax administration.
Speaking at the maiden ICT summit on taxation in Abuja recently, the pioneer Director General of the National Space Research and Development Agency (NARSDA) and senator, Professor Robert Ajayi Boroffice, highlighted AI’s potential to revolutionise tax compliance.
“AI-driven tax compliance systems analyze vast amounts of tax data in real-time, identifying inconsistencies, fraudulent activities, and underreporting. By using machine learning, AI can detect tax fraud and evasion patterns more accurately than traditional audits,” he stated.
Boroffice further pointed out that advanced economies are already leveraging AI to improve tax compliance. “Countries like the United States (IRS AI system) and the UK (HMRC AI-driven audits) are already leveraging AI to increase compliance and detect tax fraud more efficiently,” he said.
He highlighted the core importance of taxation, describing it as more than just a tool for revenue collection but a fundamental pillar of economic governance.
“A well-designed tax system fosters business confidence, encourages compliance, and ensures that governments have the necessary resources to invest in infrastructure, healthcare, education, and public services,” Boroffice noted.
Highlighting the transformative power of technology, he added: “We are living in an era where technology is not just an enabler but a driving force reshaping industries, governments, and economies. In fact, technology defines the power of a nation. Robotics and AI have already revolutionized healthcare, finance, and manufacturing, and now, they are redefining tax administration, making it more efficient, transparent, and fraud-resistant. In the digital age, leveraging technology to build a smart, efficient, and fair tax system is no longer optional—it is imperative.”
Declaring the workshop open, CITN President and Chairman of Council, Samuel Agbeluyi, reinforced the urgency of digital transformation in Nigeria’s tax system.
“Technology is no longer a luxury; it is a necessity. Countries that have embraced digital tax reforms are reaping the benefits of increased revenue mobilization, reduced tax evasion, and improved ease of doing business. Nigeria cannot afford to be left behind,” he asserted.
Agbeluyi also highlighted the inefficiencies of traditional tax administration, stating: “For decades, tax administration has relied on manual processes, paperwork-heavy systems, and traditional audits. These methods have posed significant challenges, including tax evasion and fraud, slow and inefficient processes, high administrative costs, and limited data insights.”
He called for the establishment of a smart tax infrastructure that integrates AI to enhance efficiency, transparency, and overall tax compliance in Nigeria.