AN ANALYSIS OF THE LEGAL FRAMEWORK FOR E-TAXATION ADMINISTRATION UNDER THE NIGERIA TAX REFORMS ACTS, 2025

Abstract

Globally, tax systems have had to adopt policies that will enable them meet up the demands of the digital transformation. This has led to the adoption of electronic tax administration. E-tax administration is the systematic use of electronic and digital means to perform all core administrative functions of a tax authority. In Nigeria too, there have been policy shifts aimed at e-taxation which have culminated in the tax reforms laws enacted in 2025. The aim of the study was to examine these the legal framework established by these laws for e-taxation in Nigeria. At the end of the analysis, the study found that these laws made provisions for an unprecedented and robust legal framework for e-taxation, characterised by mandatory digital registration (Tax ID), aggressive real-time compliance requirements (VAT Fiscalisation), and clear legal validity for digital records and enforcement actions. However, the study observed that the legal framework’s effectiveness is highly conditional. As its implementation is likely to face critical challenges, including severe infrastructural limitations, widespread digital literacy deficits, potential conflicts with the Nigeria Data Protection Act, 2023’s provisions regarding large volume of centralised data governance, and administrative resistance to federal-state harmonisation. To this end, the study recommended adequate implementation of the Nigeria Tax Reform Acts, widespread taxpayer education, digital infrastructural investments, and entrenched culture of transparency, accountability, and robust data protection measures.