Beyond taxes: How technology can rebuild trust, productivity, and prosperity in Nigeria

Here’s a summarized version of the article, highlighting between 4 and 8 key points:

Tax Revenue Concerns: Nigeria’s low tax revenue, around 6-8% of GDP, is below both the African average (16%) and the OECD average (over 33%).
Underlying Issues: The low tax compliance is attributed not just to evasion or weak enforcement but to systemic issues like fragmented tax administration and low public trust.
Systemic Reforms Needed: Tax reforms should focus on modernizing systems to ensure transparency, efficiency, and alignment with the creation of public value.
Role of Technology: Implementing tech-driven solutions such as digital identity, interoperable data systems, and AI can help enhance taxpayer compliance and improve state capacity.
Shift in Strategy: Instead of increasing rates or enforcement, reforms should aim to build trust through transparency, accountability, and by connecting tax contributions to visible public benefits.
Digital Identity and Data Systems: Integration of digital identities and interoperable databases can reduce evasion, streamline compliance, and encourage a more productive economy.
Automation and Efficiency: Leveraging automation can transform tax administration from enforcement-heavy to smart, enabling focused compliance efforts and reducing bureaucratic inefficiencies.
Path to Sustainable Growth: The ultimate goal should be to integrate technological advancements with effective governance to foster a transparent and trust-based tax system that supports economic growth and public confidence.