₦airaland Forum

Nigeria’s Federal Inland Revenue Service (FIRS) has launched a real-time transaction monitoring portal aimed at tightening oversight of Value Added Tax (VAT) collections across the country’s rapidly expanding digital economy.

The new system, dubbed the Transaction Monitoring System, mandates integration from banks, fintechs, and payment service providers, granting the tax agency visibility into VAT-eligible electronic payments. While the portal does not directly collect taxes, it enables FIRS to assess taxpayer thresholds, reconcile invoices, and audit declarations against bank records.

“This system represents a transformative leap in transaction visibility,” said FIRS Executive Chairman Zacch Adedeji. “By monitoring VAT-eligible activities in real time, we are fostering a fair and transparent digital marketplace for all stakeholders.”

The rollout follows recent legislation under President Bola Tinubu’s administration that empowers FIRS to automate tax processes. Although the new laws take effect in January 2026, the agency is leveraging existing provisions to begin implementation with a 30-day notice to taxpayers.

Financial institutions are required to register on the portal and integrate via APIs. Payment service providers must submit VAT data for each transaction, whether collected at checkout or calculated post-payment. Transactions above ₦5 million ($3,265) are prioritised, with encryption and AI-driven validation ensuring data integrity.

The move underscores Nigeria’s push to modernise tax administration and plug revenue leakages in a digital-first economy that has outpaced traditional compliance mechanisms.

DiamondsAreFore:
https://thecondia.com/nigeria-targets-tax-leakages-vat/

AishaDant:
I am sorry I just don't believe it.

This government lies shamelessly through their teeth. 😐

yorosstores:
Good development.
Just like HMRC.

I hope they also included log of whoever access any account from IFRS to prevent cover ups and fraud

ozo13:
It will likely be same if the FIRS workers are not adequately warned too.No be them dey teach rich Nigerians how not to pay a tax and would collect peanut as bribe for such criminal dealings

omoredia:
Bunch of clowns. Monitoring spirits. Can u monitor crypto?

DiamondsAreFore:
https://thecondia.com/nigeria-targets-tax-leakages-vat/

Disenfranchised:
Let them replicate same in our electoral system where INEC can monitor and receive voting results in real time.

99thEnemy:
But do you believe that the 'Air' you breathe is inorganic? 🙃

Afrojuju2017:
Absolutely, all these crypto systems you are using were designed and built by individuals and no matter how much walls you think have been put in front to stop the regulatory institution from seeing what you do, they can.

China and Russia have proven that to be the case

DiamondsAreFore:
https://thecondia.com/nigeria-targets-tax-leakages-vat/

Hexxah:
Good! This is applicable everywhere. I remember my first year working abroad. On filling my returns, I was informed that I was owing the tax regulatory body a lot of money cause they had tracked my extra revenue from my side hustles via my account activities. All Nigerians must pay their taxes. No more anyhowness

ozo13:
It will likely be same if the FIRS workers are not adequately warned too.No be them dey teach rich Nigerians how not to pay a tax and would collect peanut as bribe for such criminal dealings