Technology key to success of new tax laws, says NRS Chair, Adedeji

The Chairman of the Nigeria Revenue Service (NRS), Dr Zacch Adedeji, on Wednesday, said the success or failure of the country’s newly enacted tax laws will depend largely on the effective deployment of technology.

He described digital infrastructure as the bedrock upon which the sweeping fiscal reforms must stand.

Adedeji spoke at the maiden convocation lecture of the Federal Polytechnic, Ayede, Oyo State, where he delivered a lecture titled: “The Role of Technology in Implementing Nigeria’s New Tax Laws: Challenges, Prospects, and Implications for National Development.”

He described the new tax laws as the most significant restructuring of Nigeria’s fiscal legislation in nearly 50 years.

“This is not just a change in tax rates or definitions. It is a comprehensive restructuring of our tax administration framework. And that framework must now be powered by technology,” he said.

According to him, the laws were deliberately designed for a digital environment, presupposing reliable taxpayer identification systems, integrated institutional databases, traceable transactions, and automated compliance processes.

“The laws are built for a digital environment. They cannot function properly in a manual, fragmented, paper-based system. Without technology, the laws remain aspirational. With technology, they become operational,” Adedeji said.

He noted that technology would significantly reduce excessive human discretion in tax administration, which he said often breeds inconsistency, opacity, and mistrust.

“For too long, enforcement has been personality-driven. What technology does is to replace discretion with data, and opacity with transparency. It creates a system that is structured, predictable, and fair,” he said.

The NRS boss further described data as “the new infrastructure of modern tax systems,” stressing that credible and harmonised data would enable risk-based assessments rather than random audits.

“With accurate data, we can move from blanket enforcement to targeted compliance. That makes the system more efficient for government and less burdensome for taxpayers,” he added.

Adedeji, however, identified major obstacles to digital tax reform, including inadequate electricity supply, poor internet connectivity, skills shortages, cybersecurity risks, and institutional resistance to transparency.

“Technology does not operate in a vacuum. It requires power, connectivity, skilled manpower, and a culture that embraces accountability. These are real challenges we must confront,” he added.

Despite the hurdles, Adedeji maintained that a technology-driven tax system would expand the tax base without necessarily increasing rates, enhance revenue predictability, and strengthen investor confidence.

“If we get the technology right, we will not need to overburden citizens with higher rates. We will widen the net, improve compliance, and create a more sustainable revenue base,” the chairman explained.

Adedeji added that technology remains “the critical bridge between legislative intention and practical implementation,” stressing that sustainable national development depends on building a transparent, efficient, and digitally enabled revenue system.

Rector, Federal Polytechnic, Ayede, Dr Taofeek Abdul-Hameed during his welcome address at the event

Earlier in his welcome address, the Rector of the Federal Polytechnic, Ayede, Dr Taofeek Abdul-Hameed, thanked the NRS chief for honouring the institution despite his demanding schedule, describing him as “our own.”

He noted that the insights shared would be of immense benefit to the participants, both individually and collectively.

Dignitaries at the event included former Senator Ayo Adeseun; Senator Abdulfatai Buhari, Chairman, Senate Committee on Aviation and Aerospace; traditional rulers; scholars; and other stakeholders.