Business
Heavy Taxe: What Has AI Got To Do With Tax?
It is therefore incumbent on all of us to pay attention to the language of our tax masters, so that we do not get confused when it hits us.

By Sunny Ikhioya
A KEY focus of the Tinubu administration is to generate wealth by raising the tax to GDP ratio to not less than 18 percent, which means people will pay more taxes. It is therefore incumbent on all of us to pay attention to the language of our tax masters, so that we do not get confused when it hits us. That is why I have been following up on the series of tax conferences, organised by Blakey Ijezie, under the auspices of his chartered accounting firm, Okwudili Ijezie and Co.
The latest series was held on Thursday, August 15, 2024 at the Banquet hall of the Banex Mall, Lekki Lagos. It dwelt extensively on the informal sectors that account for over 80 percent of labour employment but, more importantly, how AI – artificial intelligence – could benefit our tax administration. Blakey characterised it as “taxation game-changing era, where data meets destiny”. The informal sector is seen as a potential goldmine for the government, if it could be brought into the tax net successfully.
For Dr Tunji Adeniyi, certain things have to be put in place for this to happen. Government is to facilitate access to registration, power, finance, production infrastructure, market infrastructure and information. To formalise the informal sectors, Adeniyi recommended the following steps: identify, locate, localise, provide service, incentivise and empower.
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For the government sub- sectors, they are advised to register and formalise business operations to make it easier to obtain access to finance, market and government support. In all of these, the government will benefit through enhanced tax revenue, enhanced economic growth, better economic planning, business enhancement, business resilience, safer environment and better welfare.
Blakey titled his keynote address, “The Future of Taxation – The Game Changer: Transforming the Informal Sector through Taxation”. According to him: “Today, we stand at the forefront of a revolution that will transform the fabric of taxation forever. A revolution that will harness the power of technology, innovation, and expertise to create a more inclusive and equitable tax system.” He sees AI-powered solutions as the key to streamline registration and licensing processes, provide real-time tax monitoring and automated audits, offer personalised tax advice and support, enable data-driven decision-making for tax authorities, facilitate collaboration between tax authorities, taxpayers, and technology providers”.
How can AI assist in formalisation? Simplified tax compliance and registration processes, automated bookkeeping and accounting systems, access to digital payment systems and e-invoicing, data analytics for business insights and decision-making, virtual assistance for tax and regulatory compliance. He gave his own strategies to bring in the informal sectors: “To entice informal sector executives to transition, we must offer incentives: Tax holidays or reduced tax rates, streamlined registration and licensing processes, access to training and capacity-building programmes, subsidies for technology adoption and digitalisation, recognition and certification programs for formalised businesses. AI will play a crucial role in boosting tax revenue: increase tax revenue by up to 20% through improved compliance and reduced evasion; can reduce administrative costs by up to 30%; can help identify and address tax gaps, leading to increased revenue and improved fairness.”
Examples from other jurisdictions demonstrate the potential: Kenya’s tax authority uses AI-powered systems to detect and prevent tax evasion, resulting in a 25% increase in revenue. India’s GST system uses AI-powered analytics to identify and address tax gaps, resulting in a 15% increase in revenue. Let me quote Blakey here: “By embracing this game-changing moment, we can increase revenue and fund public goods and services, promote economic growth and job creation, enhance financial inclusion and reduce poverty, improve governance and transparency. Let us seize this moment. Let us harness the power of technology and innovation to transform the informal sector. Let us create a tax system that is fair, efficient, and inclusive. ‘The future of tax is a game of innovation – and AI is the ultimate catalyst.’ Together, we can make a difference. Together, we can create a brighter future for all.”
He also touched on latest developments in tax technology, which include automation of tax processes and compliance, advanced data analytics for tax planning and risk assessment, artificial intelligence, AI, and machine learning, ML, applications, cloud-based tax software and digital platforms, blockchain technology for secure tax transactions. The opportunities of AI in taxation are as follows: enhanced accuracy and efficiency in tax calculations and compliance, improved tax planning and optimisation, increased transparency and fairness in tax assessments, automation of routine tax tasks, freeing up time for strategic advisory work, better identification and mitigation of tax risks.
There are also challenges of AI in taxation: Potential job displacement for some tax professionals, need for significant investment in technology and training, ensuring data privacy and security, addressing ethical concerns around AI decision-making, managing the impact of AI on the tax profession and society.
Other challenges to consider are: Infrastructure – Nigeria’s tax infrastructure may need upgrades to support AI adoption. Data privacy -ensuring the security and privacy of taxpayer data is crucial. Skills gap – tax professionals may need training to effectively utilize AI tools. Digital divide -AI may exacerbate existing disparities in access to technology and digital literacy.
“Overall, AI has the potential to transform taxation in Nigeria, but careful planning, implementation, and addressing of challenges are essential to maximize benefits,” he added.
Business
As Nigerians Battle Pains Of Soaring Petrol Price
This is more than just about fuel; it’s about the larger picture of governance failure. The fact that a country as oil-rich as Nigeria can’t provide affordable fuel for its people is a tragedy.

BY IFEANYI MOGBOLU
The Daily Times-The latest fuel price hike in Nigeria is beyond frustrating. Every time we think it can’t get worse, it does, and yet again, ordinary Nigerians bear the brunt of it.
It’s like a never-ending cycle, where the government’s promises of reforms or stabilisation always end up as empty rhetoric. The cost of living is already sky-high, and now, with fuel prices rising again, transport fares, food prices, and basic commodities are bound to follow suit.
It’s enraging because it doesn’t feel like anyone is truly considering the everyday citizen who is struggling just to survive.
This is more than just about fuel; it’s about the larger picture of governance failure. The fact that a country as oil-rich as Nigeria can’t provide affordable fuel for its people is a tragedy. The subsidies are gone, and now we’re left in a situation where the prices of everything keep climbing, while salaries remain stagnant or non-existent for many.
The disparity between the elites and the masses is growing, and it feels like nobody in power truly cares about the suffering of the people.
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The anger isn’t just about fuel; it’s about the entire state of living. Nigerians are exhausted. There’s no sense of security; power supply is erratic, basic infrastructure is crumbling, and inflation is at an all-time high. How do we live like this? Every day is a battle to make ends meet, and the government seems utterly disconnected from the struggles on the ground.
It’s infuriating that while politicians and elites live in luxury, the rest of us are left scrambling for the bare minimum. The state of living is unbearable, and the lack of empathy or real action from those in power only adds salt to the wound.
There’s a deep sense of anger and betrayal that comes with seeing your country’s wealth mismanaged, while the people continue to suffer. It’s hard not to feel like we are constantly being taken for granted, pushed further into hardship without any hope of relief. Something has to give, because this state of affairs is unsustainable.
QUOTE:
The anger isn’t just about fuel; it’s about the entire state of living. Nigerians are exhausted. There’s no sense of security; power supply is erratic, basic infrastructure is crumbling, and inflation is at an all-time high. How do we live like this? Every day is a battle to make ends meet, and the government seems utterly disconnected from the struggles on the ground. It’s infuriating that while politicians and elites live in luxury, the rest of us are left scrambling for the bare minimum.
Business
Nigeria To Receive $5.600,000 From Bill Gates, For Health And Agricultural Reforms, GMOs
Alongside the activities surrounding the 79th United Nations General Assembly in New York, Vice President Kashim Shettima held a meeting with the Bill and Melinda Gates Foundation leading to the announcement of the donation by the Foundation’s head of Global Development.

Bill and Melinda Gates Foundation is giving Nigeria through Vice President Kashim Shettima, a $5.600,000 funds to speedy up health and agricultural reforms in favour of the GMOs in Nigeria, and flood relief.
Through the Foundation’s head of Global Development Programme, Dr Christopher Elias, Bill Gates pledged $5 million grant approved for Lagos Business School and partners to develop the agricultural economics they called “industrial cassava” and $600,000 for flood relief in Borno State and other health sector initiatives.
Alongside the activities surrounding the 79th United Nations General Assembly in New York, Vice President Kashim Shettima held a meeting with the Bill and Melinda Gates Foundation leading to the announcement of the donation by the Foundation’s head of Global Development.
Recall that on 4 September, Bill Gates had described the Nigeria’s economy as “stagnated” and proposed agricultural reforms for faster and increased growths in crops, fruits, vegetables amongst others to enhance nutritional values of the Nigerian citizens through the agricultural sector.
In that meeting Chaired by Vice President Kashim Shettima, Bill gates urged Nigeria to adopt “innovative crop varieties with shorter growing periods, higher yields, and better pest resistance” pointing to the GMOs to address the food crisis.
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Moreover, at the 79th UN General Assembly in New York, VP Shettima reaffirmed to the Bill and Melinda Gates Foundation, the commitment of the administration of President Bola Ahmed Tinubu prioritizing health, nutrition, and agricultural development in Nigeria’s national agenda.
In a statement by Senior Special Assistant to the President on Media and Communications, Office of the Vice President, Stanley Nkwocha, Shettima said: “we are deeply committed to addressing the pressing developmental challenges facing our nation, particularly the significant malnutrition crisis”.
He emphasised the Federal Government’s dedication and urgently working to secure locations for maize production under the Telemaze programme.
VP Shettima, promising swift action to the Gate’s Foundation on import permits for certified seeds, the VP said, “We recognize the critical importance of food security and industrial agricultural development. The Cassava Accelerator programme, in particular, holds immense potential for our economy.
“We are pursuing a whole-of-government approach to digitisation and data exchange systems, which we believe will revolutionise our public services,” he added while reiterating the government’s focus and commitment to digital transformation.
“With the expertise” of Nigeria’s ministers, “and the continued support of partners like the Gates Foundation,” the nation remains confident in its “ability to drive meaningful change and improve the lives of all Nigerians.”
In his response, President of the Global Development Programme at the Gates Foundation, Dr. Christopher Elias, said the Foundation is burdened with worries of the severe flooding in Borno, and is “committed to supporting Nigeria in times of crisis.”
Speaking of Polio, the Foundation said, “We’re impressed by the national task force’s efforts to eliminate variant polioviruses by year-end,” Dr. Elias noted.
Also, President of Global Growth & Opportunity Division at the Bill & Melinda Gates Foundation, Rodger Voorhies, detailed plans for scaling up drought-tolerant maize production and advancing the Nigeria Cassava Investment Accelerator programme emphasizing that a $5 million grant has been approved for Lagos Business School and partners to develop the agricultural economics of industrial cassava.
In his words, “Industrial cassava presents a multi-billion-dollar opportunity for Nigeria,” Voorhees stressed.
He requested import permits for 5,000 metric tons of certified GMO maize seed to build a foundation seed system in Nigeria.
Business
Managing, Leading, Building Institutions And Sustainability
The two primary tasks of a top-level leader are to exploit and explore the organisation with people for now and in the future.

By Babs Olugbemi
One of my concerns for leaders is their capacity to be ambidextrous. Regardless of years of experience, knowledge, and leadership capacity, the lack of a clear distinction between managing and leading on the one hand, leading and building institutions on the second layer, and ultimately focussing on sustainability is a significant threat to successful leadership change.
I have followed events and people at C-suites, coached some, and developed frameworks for leadership development. Based on the personalities and styles of the new leaders, I have confirmed my fears about leadership sustainability in most African organisations.
“Successful leaders can aptly differentiate themselves and their roles without necessarily seeing activities as performance, focussing on what is required of them with appropriate tenacity and influence.”
The challenge for leaders is how to lead for the present and future without losing sight of the stakeholders’ immediate performance expectations. Successful leaders can aptly differentiate themselves and their roles without necessarily seeing activities as performance, focussing on what is required of them with appropriate tenacity and influence.
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In my walk as a leadership coach, I have keenly observed leaders who are managing rather than leading. Managing involves ensuring that processes achieve their intended outcomes. Leaders are above managing and should focus on creating an enabling environment for innovation, inventions, and team collaboration. The primary role in leading is not to monitor process outcomes, though critical to the company’s overall objectives, but to align corporate values with the people’s aspirations to create an engaged and ownership-thinking mindset ready to take on challenges and explore opportunities. An alignment of corporate and personal goals will not only deliver the present performance expectations. Still, it will also incubate innovations to adapt to future market demands and the sustainability of the business.
Unfortunately, the capacity for ambidexterity is rare and often marked by leaders’ exposure, approach and styles, perception, and perspective of their roles in the organisation. A leader with a wrong foundation in these areas is set for failure and awaits unfavourable decisions from the board of directors. A top-level leader might manage their teams instead of leading them. Not all leaders can combine leading for the present with building institutions. However, anyone able to submit themselves to an institution-building mechanism can champion sustainability. Aside from being a leadership coach, I help leaders achieve sustainability.
Mathematically, creating an ambidextrous organisation is beyond leading. It is to lead and build an institution that focuses on sustainability in all aspects of the organisation—employee fulfilment, customer retention, strategy effectiveness, performance evaluation, stakeholder management, process improvement, and goal congruence.
In a nutshell, the role of successful leaders in ambidextrous organisations is striking a balance between exploiting current assets and capabilities to ensure short-term success and allocating enough energy and resources to exploration to ensure future viability. The two primary tasks of a top-level leader are to exploit and explore the organisation with people for now and in the future. The two seemingly contradictory aspects—exploitation and exploration—encompass different strategies and processes and have different targets and outcomes (March 1991; O’Reilly & Tushman, 2004; O’Reilly & Tushman, 2013).
O’Reilly and Tushman described the two concepts as follows:
- Exploiting: Exploiting involves building on an organisation’s achievements and maximising returns on previous investments. It focuses on responding to current business demands to remain efficient and competitive within an established market niche, as well as on maintaining an existing customer base and stakeholder relationships. Examples of exploiting are activities focused on continuous improvement, benchmarking, and redesigning business processes.
- Exploring: Exploring focuses on expanding an organisation’s knowledge and capabilities, pioneering new products and services, and discovering and venturing into untapped markets.
The common area of practical bottlenecks in exploiting and exploring in organisations is a need for foundational trust and cohesion among the resources, especially the human capital, which are often treated as costs rather than assets to the organisations. Among all the factors of production, only humans can be ambidextrous with the capacity to think about changes in economic parameters and adjust their behaviours to match the time, content, and contextual requirements.
While organisations might have the resources to deploy in fighting competition, technology to obtain first-mover advantages, and production capacity to maximise output from input, none is compared with the potential of an engaged workforce.
Therefore, for leaders to be successful, they must refrain from operating in the realm of managing. They should operate in the capacity of institution builders, with the mindset of creating sustainable leadership and growth with people first and other factors of production second.
Consequently, only the leaders who prioritise their people over profits, pride, and organisational arrogance will be successful in the long term.
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