eTranzact Plc says digital payment systems can significantly improve tax administration, revenue collection, and public service delivery in Nigeria [1].
This shift toward digitization is critical for the Nigerian government as it seeks to modernize its fiscal infrastructure and reduce leakages in the collection of public funds. By automating the payment process, the state can potentially increase transparency and efficiency in how taxes are processed.
Niyi Toluwalope, the Managing Director and CEO of eTranzact, said the topic during the Nigeria Employers’ Summit 2026 [1]. The event, organized by the Nigeria Employers' Consultation Association (NECA) in Abuja, served as a platform to discuss the intersection of technology and economic growth.
"Digital payments can play a critical role in improving tax administration, revenue collection and public service delivery," Toluwalope said [1].
The move toward digital frameworks aims to simplify the interaction between taxpayers and the government. By removing manual hurdles, the system can reduce the administrative burden on both the state and the private sector, a change that may lead to higher compliance rates among citizens.
Digital payment integration allows for real-time tracking of funds, which helps the government monitor revenue streams more accurately. This capability is essential for planning public infrastructure and ensuring that allocated resources reach their intended destinations without interference.
Toluwalope said that the adoption of these technologies is not merely a convenience but a necessity for improving the overall delivery of public services [1]. The integration of fintech solutions into government operations is expected to create a more seamless experience for users and a more accountable system for administrators.
“Digital payments can play a critical role in improving tax administration, revenue collection and public service delivery”
The push for digital tax administration represents a broader effort by Nigeria to transition toward a digital economy. By reducing reliance on cash-based transactions, the government can mitigate corruption and human error in revenue collection, potentially stabilizing the national budget and increasing the funding available for public services.
