ICAN Registrar Urges AI Adoption in Nigeria’s Tax System

By Toheeb Omotayo

The Registrar and Chief Executive of the Institute of Chartered Accountants of Nigeria (ICAN), Dr. Adesola Okunola, has called for the adoption of Artificial Intelligence (AI) in Nigeria’s tax administration system to improve efficiency, transparency, and revenue generation.

She made this known on Thursday while delivering the keynote address at the maiden edition of the Isiaq Family Foundation Annual Accounting Lecture held at Summit University.

According to Okunola, Nigeria is currently facing what she described as a “revenue paradox,” where the country’s development needs continue to outpace the resources available to meet them. She noted that Nigeria’s tax-to-GDP ratio remains around 9.5 per cent, which is significantly lower than that of many peer economies.

She explained that the challenge is not necessarily taxpayers’ unwillingness to comply, but systemic inefficiencies, poor trust in public institutions, and complex tax processes that discourage voluntary compliance.

The ICAN Registrar stated that the integration of AI into tax administration could help solve many of these challenges. She said AI tools can support forecasting, automate auditing processes, detect fraud, and monitor compliance in real time.

Okunola added that many countries across the world are already leveraging emerging technologies to strengthen tax systems, and Nigeria should not be left behind in embracing innovation.

However, she stressed that the adoption of AI must be backed by clear regulatory frameworks to address issues such as data privacy, cybersecurity concerns, and possible algorithmic bias.

She also highlighted the importance of the proposed 2025 Tax Reform Agenda, which seeks to streamline multiple taxes into a unified structure, reduce compliance burdens on businesses, and improve the overall efficiency of tax administration.

Stakeholders at the event agreed that embracing digital transformation and modern tax reforms would be crucial to boosting Nigeria’s revenue base and supporting sustainable economic growth.