The Digest:
Nigeria’s tax authority has signed a memorandum of understanding with France to enhance its digital tax systems using AI tools. According to the agreement, while only aggregated data will be shared, critics warn that it risks exposing sensitive economic patterns and undermining fiscal independence.
Key Points:
- Nigeria’s FIRS signed an MoU with France’s tax authority to improve digital tax administration
- The deal grants Nigeria access to AI-powered audits, automated compliance, and cybersecurity tools
- Officials state only aggregated, anonymised economic data will be shared, not raw taxpayer files
- Critics argue that even aggregated data can reveal key financial patterns, risking economic sovereignty
- The agreement follows deeper Nigeria-France security ties, including cooperation during a Benin coup attempt
- It marks a shift in France’s West Africa strategy from military presence to economic and security partnerships
- Observers caution that Nigeria must retain full control over its sensitive fiscal data and systems
In an age where data is the new currency of power, a tax agreement becomes a high-stakes negotiation over sovereignty. This pact places Nigeria at a crossroads: embracing advanced tools for efficiency, while navigating the storm of potentially ceding economic insight to a foreign power. The true cost may be measured not in revenue, but in control.
Sources: Business Insider, Business Day, News Central
