Chief Blakey Okwudili Ijezie, a prominent figure in Nigeria’s financial landscape, has outlined a transformative vision for the future of taxation, focusing on integrating the informal sector into the formal economy through Artificial Intelligence (AI).
In an address at his quarterly Taxation Conference Thursday in Lagos, Ijezie emphasized the untapped potential of the informal sector, which contributes up to 40% of GDP in some nations but remains largely outside the tax net.
Ijezie argues that AI can revolutionize how tax authorities engage with the informal sector by automating registration and compliance processes, offering real-time monitoring, and providing personalized tax advice. Such advancements, he notes, will not only increase tax revenues but also spur economic growth, enhance financial inclusion, and improve social protection for millions of workers.
“The integration of AI in taxation is already yielding results in countries like Kenya and India, where AI-powered systems have significantly boosted revenue collection by detecting and preventing tax evasion. Ijezie believes Nigeria can achieve similar success by incentivizing informal businesses to formalize, offering tax holidays, streamlined registration, and access to digital tools that simplify operations,” noted the tax expert.”
However, Chief Ijezie also acknowledged the challenges ahead, including the need for infrastructure upgrades, data security, and addressing the skills gap among tax professionals. He calls for a collaborative approach, where tax authorities, businesses, and technology providers work together to build a more efficient and equitable tax system.
In closing, Ijezie reflects on his journey from being the first Chartered Accountant from Egbema-Ozubulu to leading this new wave of innovation. He urges all stakeholders to seize the moment, embracing AI as the key to transforming taxation into a driver of growth and prosperity for all.
