Nigerian businesses are spending more to comply with the country’s digital tax reforms as the shift from periodic tax filing to real-time electronic reporting forces companies to invest in new software, systems integration, and staff training.
While the reforms are expected to improve transparency, reduce tax leakages, and strengthen revenue collection, tax professionals say the transition is creating a new compliance burden, particularly for businesses that are yet to digitise their operations.
“I believe digital tax compliance has improved transparency and efficiency, but it has also increased compliance costs for many Nigerian businesses, especially SMEs,” said Yvonne Afolabi, a principal consultant at Techpoint Finance Consults.
According to Afolabi, businesses are investing in accounting software, enterprise resource planning (ERP) systems, e-invoicing integration, staff training, tax advisory services, and stronger internal controls to comply with the new framework.
For many years, businesses relied largely on manual processes to prepare invoices and file
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