Stakeholder Raises Concerns Over Digital Tax Administration

A digital tax administration expert, Salami Olayinka Kabiru, has warned that if the current challenges associated with Rev360 are not urgently addressed, the platform risks creating unintended consequences, including taxpayer frustration, declining confidence in the system, reduced voluntary compliance, and ultimately, potential revenue losses for the federal government

Kabiru, who is also the managing partner of Brooks Fountain Consults, gave the warning in an exclusive interview with LEADERSHIP in Jos.

He revealed that although the introduction of the Rev360 platform by the Nigeria Revenue Service (NRS) was undoubtedly conceived as a bold step toward modernising tax administration, improving compliance, and enhancing revenue generation through digital automation.

The tax consultant also pointed out that in principle, the initiative aligns with global best practices that encourage transparency, efficiency, and real-time tax administration adding that the practical realities surrounding the implementation of the platform have generated widespread concerns among tax consultants, businesses, and ordinary Nigerian taxpayers.

Kabiru insisted that since its introduction, many users have continued to experience persistent technical difficulties ranging from system downtimes, repeated or failed login and authentication challenges, failed payment validations, inability to upload schedules, and delayed generation of receipts.

The stakeholder explained that, for tax practitioners and consultants who serve as intermediaries between taxpayers and the revenue authority, these operational issues have created significant professional bottlenecks and reputational risks.

The Managing Partner Brook Fountain also argued that the burden is even heavier on taxpayers adding that any compliant businesses now struggle to meet statutory deadlines, not necessarily because of unwillingness to comply, but because the platform itself has, since inception, frustrated the filing and remittance process.

“There is growing apprehension that organizations may eventually be exposed to unnecessary penalties, accrued interests, and compliance disputes arising purely from technical system failures rather than deliberate default.

Kabiru further stressed, “Another major concern is the apparent knowledge gap surrounding the operation and administration of the Rev360 platform, even among some officials of the NRS.

“In several instances, taxpayers and consultants seeking clarification or technical assistance are often confronted with uncertainty, inconsistent guidance, or delayed responses due to limited operational familiarity with the system.

He maintained that, this situation further compounds the frustrations already being experienced by users of the platform stressing that consequently, the tax administration process itself has become significantly hampered by persistent technical difficulties and inadequate system support.

“Taxpayers who are genuinely willing to comply are frequently unable to obtain timely assistance or resolve critical filing and payment challenges within statutory timelines.

“This not only undermines confidence in the digital reform process but also places unnecessary administrative and financial pressure on compliant taxpayers and their representatives.

“Beyond the immediate inconveniences, the long-term implications may be more damaging to the tax ecosystem. A tax administration system that becomes excessively difficult to navigate can discourage voluntary compliance; the very foundation upon which sustainable revenue generation depends.

He also noted that small and medium enterprises, already operating within a fragile economic environment, may become overwhelmed by increasing compliance complexities and administrative uncertainties.

In addition he said, consultants and tax professionals who ordinarily support government revenue mobilization efforts now expend excessive productive hours resolving avoidable technical issues instead of focusing on strategic tax advisory and compliance enhancement.

Kabiru further explained that, this results in increased compliance costs for businesses and reduced efficiency across the tax administration chain adding that digital transformation in tax administration is necessary and commendable, and the Rev360 initiative is, without doubt, a laudable venture.

“However, successful digital reform must be accompanied by robust infrastructure, extensive user testing, stakeholder engagement, responsive technical support, adequate personnel training, and transitional flexibility. Technology should simplify compliance, not complicate it.

According to him, reform intended to strengthen revenue generation should not inadvertently become an impediment to the very compliance it seeks to promote.

He added that as the matters currently stand, there are growing concerns that the filing of December 2025 year-end accounts may already be at risk, potentially exposing taxpayers to substantial and avoidable penalties. Consequently, tax consultants and taxpayers alike are increasingly apprehensive about the additional financial burdens these challenges may impose.

“In light of these circumstances, it would be both prudent and equitable for the NRS to consider extending filing deadlines to enable stakeholders adequately fulfill their civic tax obligations without being unfairly disadvantaged by technical and administrative constraints, he said.