Business
VAT Collection: FIRS deploys technology to capture market traders
In a bid to expand its Value Added Tax in line with its mandate the Federal Inland Revenue Service (FIRS) on Thursday unveiled how it would implement the Integrated Market Revenue Management System (IMRMS), a purpose-built digital platform, to capture the informal sector, especially market traders in the federal government’s tax net.
The tax office said, it would collaborate with Market Traders Association of Nigeria (MATAN), the umbrella body for all trading associations in Nigeria, to collect and remit Value Added Tax (VAT) from traders in marketplace, using the IMRMS platform.
The collaboration code named as the VAT Direct Initiative (VDI), is part of a deliberate move to expand the government’s tax base.
MATAN which is the largest player in Nigeria’s market space has a membership of over 40 million traders across the country.
Under the arrangement, MATAN is expected to digitally enumerate its members, give them a digital identity and track their turnover so that VAT accrued is collected and remitted to the FIRS.
Through this initiative, the FIRS will help tackle multiple taxation in the marketplace through partnership with security agencies to curb the activities of touts, miscreants and self-imposed tax collectors involved in illegal tax collection in Nigeria’s market spaces.
Speaking at an the official launch of traders enumeration exercise in Abuja, Mr Adebayo Adefeogbe, a director in the FIRS, said the initiative would grant the government coordinated access to almost 70 per cent untaxed revenue in the informal sector.
He said collecting VAT from over 40 million traders would enable the government to provide basic amenities in marketplaces across the country.
Moses Ige, MATAN National Coordinator of Incentives, urged market leaders who were present at the event, to sensitise members of various market associations to ensure that they are captured for the VAT Direct Initiative (VDI).
He listed the benefits of VAT Direct Initiative for registered traders to include health insurance, micro pension, general insurance cover, low-interest and non-collaterised business loans and grants, provision of provision of social amenities in marketplaces and free legal services.
Ige said, “All the services, including health insurance scheme, enjoyed by those in the public sector will also be extended to those in the informal sector. Registered MATAN members will have access to free medical care.
“Registered traders will also enjoy insurance cover in case of any loss as a result of disasters, have access to loans, and enjoy micro-pension scheme. We are working with the National Pension Commission (PENCOM) to get our members registered for the contributory pension scheme.
“With the VAT Direct Initiative, the government will get more revenue to execute capital projects in markets across the country.
“We are also partnering with Bank of Industry (BOI) to ensure that every small business owners have access to loans.”
Tier-one lender, Fidelity Bank Plc, has once again highlighted the importance of promoting non-oil exports as it recently hosted the 18th edition of its dedicated capacity development training tagged Export Management Programme (EMP 18). The programme, which was held recently in Lagos provided a platform for entrepreneurs interested in exploring global trade opportunities to scale and acquire relevant expertise.
Hosted in partnership with the Lagos Business School (LBS), the 5-day intensive program focused on equipping entrepreneurs with the skills and knowledge needed to explore international market opportunities and strengthen their capacity to thrive in the export sector.
“At Fidelity Bank, our strategy to enhance non-oil exports is guided by the significant opportunities it offers to our customers and the national economy. This is why we offer a comprehensive suite of financial, advisory, and market-access solutions for businesses aiming to engage in international trade.
“Our market-access initiative, EMP, launched in 2016, has trained over 1,600 entrepreneurs. Today, we completed the 18th cohort with high-caliber participants and a 150% oversubscription. This indicates a promising future for Nigeria’s non-oil exports,” explained Isaiah Ndukwe, Divisional Head of Export and Agriculture at Fidelity Bank Plc.
Facilitated by key industry experts in the exports space, EMP 18 took participants through several sessions focused on critical areas in global trade such as Export Finance Instruments, Export Documentation, Accessibility of Export Markets, amongst others.
A key feature of the training was a facility tour of one of Nigeria’s busiest Export Processing Terminals (EPT) located in Ikorodu, Lagos state. The full-day visit, which was anchored by officials of the Nigerian Customs Service (NCS), gave participants a first-hand feel of the necessary procedure and requirements for securing regulatory approval for exporting from Nigeria.
One of the program participants, Patrick Ulayi Awu-Patricks, Managing Director/Chief Executive Officer, Alliance & Frontier Limited, commended Fidelity Bank for its leadership in deploying capacity-building initiatives in the non-oil exports sector. In a discussion with journalists, he stated that EMP 18 provided invaluable exposure to the opportunities in the export business noting that, “There are lots of non-oil exports opportunities and entrepreneurs must be able to identify and capitalize on these to be able to play effectively in the international trade space. This course has given me insights into the power of data which is essential for strategic decision-making.”
Ranked among the best banks in Nigeria, Fidelity Bank Plc is a full-fledged Commercial Deposit Money Bank serving over 8.5 million customers through digital banking channels, its 255 business offices in Nigeria and United Kingdom subsidiary, FidBank UK Limited.
The Bank is the recipient of multiple local and international Awards, including the Export Finance Bank of the Year at the 2023 BusinessDay Awards; the Banks and Other Financial Institutions (BAFI) Awards; Best Payment Solution Provider Nigeria 2023; and Best SME Bank Nigeria 2022 by the Global Banking and Finance Awards. It was also recognized as the Best Bank for SMEs in Nigeria by the Euromoney Awards for Excellence 2023 and the Best Domestic Private Bank in Nigeria by the Euromoney Global Private Banking Awards 2023.
The Kogi State Government has assured retirees that pension and gratuity payments are now processed transparently, eliminating the need for personal connections or lobbying before benefits are paid to retirees.
Director-General of the Kogi State Pension Commission, Mariam Abedo, disclosed this in an Exclusive Chat with the Special Adviser on Media, Ismaila Isah who was on a courtesy visit to her office in Lokoja.
She explained that the government has introduced a technology-driven payment system that ensures fairness and efficiency.
“Once a retiree’s documentation is complete, their payment is processed without any influence. We currently process over 200 retirees daily,” she stated.
Abedo further disclosed that the commission has significantly cleared pension arrears as the state has consistently made funds available to meet obligations of retirees.
She emphasized that transparency and accountability have improved the commission’s operations, making the payment process smoother and more reliable.
Abedo also warned retirees against falling victim to individuals who claim they can influence payments of benefits, stressing that all entitlements are processed strictly on merit.
She commended Governor Ahmed Usman Ododo for prioritizing the welfare of pensioners and reassured retirees that payments would continue as funds are available to the commission to pay benefits to retirees in the state.
A leading African payments technology company, Flutterwave and the Federal Inland Revenue Service, FIRS have concluded collaborative discussion to digitize tax collection in Nigeria.
The collaboration is a step initiated by the FIRS to simplify tax compliance by offering multiple payment options, real-time reporting, and offline capabilities for those with limited internet access.
Meanwhile, Flutterwave CEO Olugbenga ‘GB’ Agboola stressed the firm’s commitment to ensure the using of technology to enhance efficiency, transparency, and economic growth by digitizing government tax collections.
Agboola said: “At Flutterwave, we are committed to leveraging technology to drive efficiency and economic growth. By making tax payments easier and more transparent, we are helping to digitize government collections and support national development which is in line with our mission,” he said
The partnership enables businesses and individuals to pay taxes, levies, and other statutory fees through Flutterwave’s secure and efficient digital infrastructure.
Driving transparency and accessibility
The integration introduces several enhancements, including Flutterwave’s Senior VP, Olufunmilayo Olaniyi, highlighted the importance of public sector collaboration in advancing digital payments, fostering trust, and driving innovation in Nigeria.
“Working with the public sector is pivotal to shaping the future of digital payments in Nigeria. This underscores our commitment to delivering solutions that serve Nigerians better, foster trust, and drive impactful innovation through strategic collaboration.”
What you should know
The Nigerian government has been implementing several measures to enhance tax compliance and efficiency, including digital reporting and e-invoicing systems. In line with these efforts, the Federal Inland Revenue Service (FIRS) is set to pilot its “e-Invoice” platform in July 2025 to streamline invoice management and improve real-time visibility into business transactions.
Amid these regulatory shifts, Flutterwave has been strengthening its presence in Nigeria’s financial ecosystem through strategic collaborations. Beyond facilitating tax payments, the company has expanded its role in digital innovation and security. It recently partnered with the National Information Technology Development Agency (NITDA) and Alami to drive digital transformation and empower SMEs in the tech and creative industries.
Also in 2024, Flutterwave deepened its commitment to financial security by partnering with the Economic and Financial Crimes Commission (EFCC) to establish a Cybercrime Research Center at the EFCC Academy.
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