As Nigeria enters a new phase of tax administration, a locally developed technology platform, Kaanta AI, has been launched to help Nigerians have a better understanding of their tax obligations.

Kaanta AI is a WhatsApp-based, AI-powered tax assistant designed to provide simplified tax guidance to traders, small and medium-sized businesses, professionals, and individuals.

The platform arrives at a time when tax reforms and compliance requirements are becoming more prominent in public discourse.

Rather than relying on complex online portals or technical language, Founder and Chief Technology Officer, Oluwaferanmi Oladepo, at the launch of the innovation, explained that Kaanta AI operates entirely on WhatsApp, allowing users to ask tax-related questions, receive explanations, calculate taxes, and understand available reliefs using text, voice, or handwritten notes.

The service also supports local languages, including Yoruba, Igbo, Hausa, and Pidgin, expanding access beyond English-speaking users.

With the new tax law taking effect on January 1, 2026, analysts expect increased public confusion and misinformation. However, Oladepo assured Nigerians that Kaanta AI positions itself as a verification and guidance tool, offering instant responses to tax-related questions and concerns.

He described the platform as a response to a long-standing gap in tax education, sayin,: “Tax should not feel scary or confusing. Kaanta AI is built to help Nigerians understand what applies to them and make informed decisions, using clear and accessible language.”

According to the tech guru, in addition to basic explanations, the platform provides tax calculations and insights on tax reliefs, noting that the company also plans to introduce professional tax services, including filing support for small businesses and larger organisations. Kaanta AI operates a freemium model, with basic guidance available at no cost and advanced services offered through paid plans.

According to Tobiloba Olanipekun, Product and Growth Lead, the platform was designed around how Nigerians already communicate.

Olanipekun said: “WhatsApp is where people naturally ask questions and seek help. We wanted Kaanta AI to feel like a conversation, not a lecture. Anyone from a market trader to a young professional can ask questions freely and get clear answers.”

He added that the long-term goal is to improve tax education and compliance culture across the country, adding that: “With tax becoming part of everyday conversation in Nigeria, we aim to guide people with clarity rather than confusion.”

Kaanta AI is now available to users nationwide. As tax reforms take centre stage in 2026, the platform is expected to play a role in helping Nigerians navigate the changing tax landscape.

By Blaise Udunze

Millions of Nigerian citizens are watching with cautious anticipation as the federal government begins implementing its far-reaching 2026 tax reforms. This is to say that the official assurances that the new tax regime will be fairer, simpler, and more humane, as relished by the proponents of the reforms, are being listened to by both low-income workers, small business owners, professionals, and informal sector participants.

Tax

Still, behind the optimism is a familiar worry shaped by past experience that reminds us that taxation without accountability undermines both governance credibility and the legitimacy of the tax system, thereby making it hard to believe in.

For many Nigerians, the question is not whether taxes should be paid, but whether the state has earned the moral authority to demand them, judging by the lack of accountability over the years.

The Nigerian Tax Act and the Nigerian Tax Administration Act, two of the four pillars of the 2026 reforms, came into force on January 1, reshaping how individuals and businesses are taxed. According to proponents of the reforms, particularly the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Dr. Taiwo Oyedele, the changes are deliberately pro-poor and pro-growth. Workers earning below N800,000 annually are exempted from personal income tax. Basic food items, healthcare, education, and public transportation have been removed from the VAT net. Small companies with turnovers of N100 million or less are exempt from corporate income tax, capital gains tax, and the new development levy. Multiple tax laws have been consolidated into a unified code to reduce duplication, confusion, and harassment.

On paper, these reforms acknowledge Nigeria’s economic distress and signal a genuine attempt to lighten the burden on the majority of citizens. However, Nigeria’s tax crisis has never been about tax rates alone.

Nigerians have lived through decades of taxation that did not translate into visible development, social welfare, or improved quality of life, as this has succinctly shown that it is fundamentally about trust. No matter how progressive, for this singular reason, Nigerians see the announcement of the reforms via a long memory of disappointment and failure, while Nigerians have increasingly become vocal in demanding accountability from government at all levels, and social media has played a powerful role in amplifying public scrutiny in recent years.

Images and videos of the alleged lavish lifestyles of public office holders and their families are alarming and circulate widely, reinforcing the perception that public funds are misused or siphoned for private gain. While not all such claims are verified, the damage lies in the perception itself since governance credibility suffers when citizens believe that those entrusted with public resources live far above the realities of the people they govern.

The Nigerian Constitution, while not explicitly mandating accountability in narrow terms, establishes in Section 14 that the security and welfare of the people shall be the primary purpose of government. The state is expected to manage the economy in a manner that ensures maximum welfare, freedom, and happiness of citizens on the basis of social justice and equality. The provisions made in Section 22 further empower the media and arm it to the teeth to hold the government accountable to the people and beyond constitutional provisions, Nigeria voluntarily signed up to global transparency initiatives such as the Extractive Industries Transparency Initiative, domesticated through the NEITI Act of 2007. Over the period, NEITI has helped improve disclosure in the extractive sector, as its mandate does not extend to tracking how revenues are spent, leaving a critical accountability gap.

This gap is most evident in the lived experience of Nigerian taxpayers. Intrinsically, the average Nigerian does not experience taxation as a collective investment in shared prosperity. Instead, taxation feels like an added burden layered on top of already crushing personal responsibilities. Nigerians generate their own electricity through generators, source water privately, pay for security, indirectly fund road maintenance through vehicle repairs, and bear healthcare and education costs out of pocket. When citizens pay taxes and still bear the full cost of survival, taxation begins to resemble organized extraction rather than civic contribution.

For instance, the stories of Mr. George and Mr. Kunle reflect this reality. Mr. George, is an earned salary worker who has personal income tax deducted monthly through PAYE. Meanwhile, George also pays for electricity, security, water, road repairs, and private schooling. What about Mr. Kunle, who is a small business owner and chooses not to pay taxes voluntarily with the belief that the government has failed to meet its obligations and other rights? Their frustration is widely shared. According to the IMF, only about 10 million Nigerians out of a labour force of 77 million are registered taxpayers. This low compliance is not a product of ignorance alone, but of a deeply broken social contract.

Over the years, successive governments have attempted to address low compliance through amnesty schemes such as the Voluntary Asset and Income Declaration Scheme. Though these initiatives temporarily expanded the tax base, their long-term impact remains questionable because compliance driven by fear of penalties or temporary incentives does not endure where trust is absent. In Nigeria, tax compliance is often compelled rather than voluntary, just as we are about to experience in this new regime, enforcement tends to replace persuasion. This approach may generate short-term revenue, but it weakens legitimacy and fuels resistance.

Academic studies on taxation and accountability in Nigeria reinforce this conclusion. While global literature suggests a strong relationship between government accountability and voluntary tax compliance, Nigeria’s experience has been distorted by weak institutions and limited political legitimacy. This should be noted by the policymakers that where citizens perceive government as unaccountable, coercion increases, collection costs rise, and evasion becomes normalized. Hence while, the result is a vicious cycle in which low trust breeds low compliance, prompting harsher enforcement that further erodes trust.

Other jurisdictions offer valuable lessons. For instance, today, a country like Sweden has one of the highest tax-to-GDP ratios in the world with remarkably high compliance rates, and this has been the norm despite imposing steep personal income taxes. The reason is simple, in the sense that transparency and visible benefits are not far-fetched. Citizens know how their taxes are spent and experience the returns through quality education, healthcare, social security, and public services. Taxation is viewed not as punishment but as a shared investment. In China, targeted tax deductions for healthcare and education similarly align taxation with social needs, reinforcing compliance through perceived fairness.

Nigeria’s challenge is not to replicate these systems mechanically, but to internalize their core principle that enables the people to comply willingly when they believe the system works and that everyone is treated fairly.

This principle is being tested anew by the recent controversy surrounding the Federal Inland Revenue Service’s (now branded as Nigeria Revenue Service) appointment of Xpress Payments Solutions Limited as a Treasury Single Account collecting agent. Though framed as a technical step toward modernizing digital tax infrastructure, the quiet nature of the appointment, coupled with limited public disclosure, has reignited fears of revenue capture and cartelization. Critics have drawn parallels with past private-sector dominance over state revenue systems, warning against concentrating sensitive national revenue functions in private hands without clear safeguards.

Former Vice President Atiku Abubakar’s reaction captured the broader public unease. He raised an alarm while warning against what he described as the nationalization of a revenue collection model that had previously raised serious transparency concerns and the Nigeria Revenue Service (NRS) has insisted that Xpress Payments is merely an additional option and not an exclusive gatekeeper, the controversy highlights a deeper issue, which authenticates the fact that in a climate of low trust, silence, and lack of clarity, suspicion. Even well-intentioned reforms can falter if citizens feel excluded from the process.

With broader concerns about governance, accountability, and democratic integrity in society, this moment coincides with it. Even the recent calls by leaders such as Rotimi Amaechi and civil society organizations like ActionAid Nigeria underscore the growing demand for responsible, transparent and people-oriented leadership as being raised from different quarters. Governance indices consistently rank Nigeria poorly on accountability, while poverty, unemployment and insecurity remain widespread. That is what, in such a context, asking citizens to trust the tax system without first restoring confidence in governance is unrealistic and unattainable.

At the core of the debate lies a fundamental moral question: when does a government have the right to tax its citizens? Taxation is not charity and it is not magic. It is a contract. Citizens surrender a portion of their income so the state can provide security, infrastructure, justice, and essential services that individuals cannot efficiently provide on their own. When this exchange functions, taxation feels legitimate. When it fails, taxation feels coercive.

No doubt, legally, the Nigerian state retains the power to tax, but morally, legitimacy depends on performance. Security is foundational. Infrastructure enables productivity. The government must understand that healthcare and education protect human capital, while transparency ensures fairness. And, when these pillars are weak, taxation loses its ethical grounding. All that Nigerians demand is not perfection; they demand evidence that their sacrifices matter.

As the implementation of the new tax reforms takes root, Nigeria stands at a defining moment. The reforms offer an opportunity to reset the social contract around taxation, broaden the tax base, and reduce dependence on dwindling oil revenues. But the point being flagged is that reform without accountability will only reproduce old failures in new forms. To buttress this further, taxation without accountability, as being practiced in the past, will invariably undermine governance credibility and erode the legitimacy of the tax system.

And, as the scripture says, you cannot put “old wine in a new wineskin.” Failure to adhere to this instruction will lead to combustion. Yesterday’s methods or mindsets on taxation will rupture new strategies, which cannot thrive or survive because of a lack of accountability.

If the government is serious about improving voluntary compliance, it must go beyond policy announcements. Hence, must demonstrate transparent use of tax revenues, strengthen oversight institutions, limit monopolistic control over revenue collection, and communicate clearly and consistently with citizens. Most importantly, it must deliver tangible improvements in the daily lives of all Nigerians.

When citizens see roads fixed, hospitals working, schools improving, and security strengthened, compliance will follow. Voluntary tax compliance is not an act of generosity; it is a rational response to trust. Fix the system, restore confidence, and Nigerians will pay, not because they are forced, but because the contract finally makes sense.

Blaise, a journalist and PR professional, writes from Lagos and can be reached via: [email protected]

The Federal Ministry of Finance has anchored the signing of a Memorandum of Understanding (MoU) between the Niger State Government and the Ministry of Finance Incorporated (MOFI) for the implementation of a Mass Housing and Agricultural Settlement Project in Niger State.

Speaking at the MoU signing ceremony, Dr. Doris Nkiruka Uzoka-Anite, the Honourable Minister of State for Finance, described the agreement as a landmark initiative that underscores the Federal Government’s commitment to cooperative federalism, inclusive economic growth, and strategic alignment in line with President Bola Ahmed Tinubu’s Renewed Hope Agenda.

With the Federal Ministry of Finance serving as the anchor institution, the project benefits from strong policy coordination, financial credibility, and institutional oversight. The initiative is designed to integrate housing delivery with agricultural productivity, rural stability, and economic empowerment.

“Housing is a fundamental pillar of development. In Niger State, housing also intersects directly with agriculture, food security, and rural livelihoods. This project is therefore structured not merely as a housing intervention, but as a settlement framework for farmers aimed at strengthening agricultural value chains,” the Minister stated.

Niger State, one of Nigeria’s most agriculturally endowed states, continues to face challenges, including insecure settlements, rural-urban migration, and limited rural infrastructure. The project seeks to address these constraints by providing secure, well-planned housing settlements for farmers, strategically located to support agricultural production, storage, processing, and access to markets.

The Honourable Minister emphasized that anchoring farmers in stable communities with access to basic infrastructure will improve productivity, reduce post-harvest losses, enhance security, and encourage youth participation in agriculture, making farming more efficient, attractive, and profitable.

Sustainability and affordability are core pillars of the initiative, with integrated renewable energy solutions—including solar-powered homes and community facilities, designed to ensure reliable power, reduce energy costs, and support agro-processing and storage activities. The project also prioritises efficient land use, access roads, water infrastructure, and environmentally responsible building practices.

Reacting to the sustainability focus of the project, the Governor of Niger State, His Excellency Mohammed Umaru Bago, expressed strong optimism about its transformative impact on the state.

“When you say sustainability, affordability is very important. When I heard that a mini-grid has been deployed in Jos, it’s because it’s affordable. Diesel is not sustainable because it’s not affordable. For considering the factor of affordability in this project, we’re grateful,” the Governor said.

He further announced the state’s commitment to the project, adding, “So, Honourable Minister, Niger State is bringing forward 100,000 hectares of land for this project. I want to assure you that with this initiative, you have solved 80 percent of our problems.”

Drawing a direct link to the Federal Government’s development agenda, Governor Bago noted, “We’ve gone across the world and seen how people transit from poverty to prosperity. And I think the goal of the President, my father, is for us to transition our people out of poverty in the next four years, by the grace of God.”

The Managing Director and Chief Executive Officer of the Ministry of Finance Incorporated (MOFI), Dr. Armstrong Ume Takang (Ph.D.), who attended the ceremony alongside other critical stakeholders, including the building contractor, reaffirmed MOFI’s commitment to quality delivery and agricultural productivity.

Dr. Takang assured the Niger State Government of the contractor’s proven competence and credibility in delivering mass housing projects, stressing that affordability would not come at the expense of quality.

“We want affordable and decent houses. The fact that they are located in rural communities does not mean the quality should be compromised,” he said.

Beyond housing, Dr. Takang highlighted MOFI’s broader role in strengthening the agricultural component of the settlements through strategic partnerships.

“We have partners who will supply affordable fertilisers imported in large quantities. We will also work with other partners to ensure access to key agricultural inputs, not only fertilisers, but also pesticides, high-quality seeds, and elements of mechanisation,” he added.

The project adopts an innovative financing model that blends public assets with private investment, ensuring sustainability, transparency, and shared risk. Through this approach, the government focuses on policy direction and oversight while leveraging private sector efficiency and capital.

Beyond improving food security, the Mass Housing and Agricultural Settlement Project will stimulate broad-based economic activity and generate employment across construction, agriculture, Agro-processing, renewable energy, logistics, and community services. The initiative will support local industries such as cement, steel, transportation, and agro-allied enterprises, while strengthening rural economies and increasing Niger State’s internally generated revenue.

Affordability and inclusiveness remain central to the project’s design. The settlements are tailored to the income realities of farmers and low- to middle-income earners, supported by transparent allocation mechanisms and strong governance structures to ensure benefits reach the intended beneficiaries.

The MoU sends a clear signal to the investment community that Niger State, working in alignment with the Federal Ministry of Finance and MOFI, is open to credible, well-structured, and impact-driven investment. Developers, financial institutions, pension funds, real estate investors, and agribusiness operators are invited to view the project as a scalable and replicable model.

Reaffirming the Federal Ministry of Finance’s commitment, the Honourable Minister assured stakeholders of continued coordination, fiscal discipline, and policy support to ensure the project moves swiftly from signing to execution and delivery.

Commending the leadership of MOFI and the Executive Governor of Niger State, the Minister concluded that the initiative reflects a shared vision for integrated development.

“Through this partnership, we are not just building houses; we are creating stable farming communities, strengthening food security, and laying the foundation for sustained prosperity in Niger State,” she said.