Digital payment systems increase transparency, reduce leakages, and provide real-time tracking, ensuring more tax revenue reaches the government. By digitizing tax payments, the collaboration modernizes government collections, improves efficiency, and builds taxpayer trust through greater transparency.

The Nigerian Federal Inland Revenue Service (FIRS) has partnered with African payments technology company Flutterwave to enable digital tax collections. This was announced on March 20. It makes Flutterwave one of the few fintechs modernizing government payments.

Olugbenga ‘GB’ Agboola, CEO of Flutterwave, stated: "We are committed to leveraging technology to drive efficiency and economic growth. By simplifying tax payments, we are digitizing government collections and supporting national development in line with our mission."

Through this integration, businesses and individuals across Nigeria can now pay taxes, levies, and other obligations via Flutterwave’s secure and seamless payment infrastructure. The system offers real-time tracking, diverse digital payment options, offline payment capabilities, and enhanced transparency, ensuring a faster and more accessible tax payment experience.

According to the Nigerian Bureau of Statistics, Nigeria's tax-to-GDP ratio stood at 10.86% as of 2021. The country’s fragmented tax system, which hinders revenue growth, is cited as one of the reasons for this low figure. By digitalizing payments and improving accessibility, the collaboration centralizes tax collection, reduces bottlenecks, encourages compliance, and helps boost government revenue.

This partnership aligns with FIRS’ modernization efforts, which include the adoption of technology for transparency and efficiency, offering Nigerians a streamlined way to fulfill their tax obligations.

Hikmatu Bilali