KEY POINTS

• TaxPro Max is Nigeria’s digital tax system launched to simplify tax filing, payments, and compliance.
• It increased Nigeria’s tax revenue by 92% in 2022, achieving a record N10.1 trillion collection.
• The system promotes transparency, tracks delinquencies, and empowers taxpayers with easy access to tax clearance certificates.

Nigeria, Africa’s largest economy, has long grappled with the challenge of mobilising sufficient domestic revenue to fund its ambitious development agenda. With a heavy reliance on oil exports and a persistent tax gap, the Nigerian government has sought innovative solutions to boost tax compliance and collection. It is against this backdrop that the introduction of the TaxPro Max system has emerged as a game-changer, transforming the country’s tax administration and paving the way for a more prosperous future.

In the ever-evolving landscape of public sector innovation, few initiatives have had as profound an impact as the TaxPro Max system in Nigeria. The country’s paper-based tax system was cumbersome, prone to errors, and often inaccessible to the average taxpayer which meant the government was losing potential revenue. The cutting-edge solution launched by the tax authority in June 2021, is a digital system for taxpayer registration, returns filing, payment, and clearance certificate requesting, among other functionalities. Muhammad Nami, the executive chairman of the Federal Inland Revenue Service (FIRS), explained that this digital solution was in line with the objectives of the service to improve the country’s ease of doing business ranking and revenue generation.

It was designed and developed by the digital services.

“This was a game-changer,” explains Ejikeme Otti, a focal officer project manager helping to train staff and also educating taxpayers on its ease, which allowed for voluntary compliance and increasing revenue. “By introducing this new technology, we were able to connect with other government agencies to capture businesses in the tax net allowing them easy access to our one-stop shop for tax clearance certificate from any part of the world without physically visiting the agency and ensuring that they are compliant and up-to-date with their tax filings.”

But the impact of Tax Pro Max extends far beyond the initial registration process. The system’s intuitive user interface and robust data management capabilities have streamlined the entire tax lifecycle, from filing and payment to auditing and compliance.

“One of the key features of Tax Pro Max is its ability to provide real-time data insights,” Ejikeme says. “We can now monitor revenue streams, track delinquent taxpayers, and identify areas for improvement with unprecedented accuracy and speed.”

The results speak for themselves. In the years following the system’s implementation, Nigeria’s tax revenue has soared, with collections increasing by an impressive 92% in 2022. The Service stated that it generated N10.1 trillion in 2022, the highest tax collection ever recorded in its history, thereby achieving over 96 percent of its collection target for the year. Ejikeme attributes this success to the system’s ability to enhance transparency, reduce leakages, and empower taxpayers to fulfil their obligations with ease.

“Tax Pro Max has truly revolutionised the way we approach tax administration in Nigeria,” Ejikeme says. “By harnessing the power of digital technology, we’ve been able to create a more efficient, equitable, and user-friendly system that benefits both the government and the people.”

As Nigeria continues to navigate the complexities of economic development, Ejikeme’s contribution on Tax Pro Max stands as a shining example of how public sector innovation can drive tangible, measurable change. His unwavering dedication to modernising tax administration has not only improved revenue collection but has also fostered a culture of compliance and civic engagement.

“This is just the beginning,” Ejikeme says. “With Tax Pro Max as a foundation, we can continue to build upon our successes and explore new ways to leverage technology to improve the lives of Nigerians. It’s an exciting time, and I’m honoured to be a part of this transformative journey.”