FIRS Unveils Real-Time VAT Tracking Portal, Mandates Integration for Banks, Fintechs, etc in Nigeria

The Federal Inland Revenue Service (FIRS) of Nigeria has unveiled a Real -time transactions monitoring system To follow all electronic transactions eligible for VAT, forcing the integration of banks, card schemes, fintechs and payment service providers.

According to a Tech Cabal report, this decision is part of an aggressive thrust to connect tax leaks to the Nigeria’s rapid expansion digital economy.

Speaking on this subject, the executive president of the FIRS, Zacch AdeDeji, said,

“”This system represents a transformer jump in the visibility of transactions. By monitoring eligible activities on real -time VAT, we favor a fair and transparent digital market for all stakeholders ”.

The portal obliges financial institutions to transport transactions via the system, by granting instant visibility in payments eligible for VAT and potential deductions. Although FIRs do not directly allow taxes via the portal, it will use the data to automatically reconcile invoices and assess the taxpayers thresholds via a centralized dashboard.

The agency said that the Nigeria’s rapidly growing digital economy has exceeded traditional tax surveillance methods, which led to significant shortcomings in terms of compliance and visibility of transactions. To remedy this, the new platform operates Data collection in real time, encryption and validation led by AI to ensure the integrity of transactions.

This directive comes after the president of Nigeria, Bola Tinubu, on June 26, 2025, By the way the four drafts of the following tax reform: Nigerian tax invoice, bill on the tax administration of Nigeria, bill on Nigeria returned service (establishment) and the bill joint law in the income board (now “acts”).

The president’s assent is the culmination of the efforts of the presidential committee of tax policy and tax reforms to reshape the landscape of tax / economic governance and the tax administration in Nigeria, with a view to supporting the economic policy of the administration.

Acts are expected to offer better surveillance on government income and rationalize the tax administration in Nigeria to bring it closer to the best practices worldwide and improve the efficiency of the tax administration in Nigeria.

In particular, after a conference held by the FIRS on July 22 and 23, 2025, in a statement cited by the CEO of FIRS, he noted that the event was organized to highlight the intensified efforts of the agency to fight against IFFs, in particular the strengthening of compliance mechanisms, the improvement of beneficial property transmission and technology technology. “”

Currently, Nigeria’s financial institutions are invited to integrate into the portal because they manage millions of micro-transactions daily. Banks report only transactions greater than 5 million Nairas ($ 3,200), leaving smaller taxable transactions largely undocumented. By integrating these institutions, the FIR aims to enter a major leakage point in consumption tax collection and to normalize data on taxable transactions.

Although the new tax laws took effect in January 2026, FIRS exercised its existing powers under article 25 (4) of the FIRS law, which allows it to issue a 30 -day notice to taxpayers to integrate into the system.

The FIR have specified that transaction data alone is not a final indicator of tax liability. Before using financial data for evaluations, it will be cut against taxpayer self-assessments, where individuals and businesses can request eligible deductions to reduce taxable income.

Overall, while the directive strengthens the Nigeria fiscal system and promotes transparency, it requires significant compliance requirements to financial institutions, which could reshape operational and cost structures in the Fintech and Banking sector.