Nigeria Moves Ahead with E-Tech for Pioneering Real-time Tax Collection Tech Partnership
Real-time tax collection technology will be unveiled in Nigeria for the first time.
Africa jurisdiction Nigeria is moving ahead with a bold streamlining technology partnership that collects taxes instantly from online transactions.
The Deal
The Federal Inland Revenue Service of Nigeria (FIRS) is signing an agreement with UK-based fintech provider E-Technologies Global Limited to adapt tax collection to the digital age.
The Innovation
The pioneering agreement offers a first-of-its-kind approach to tax collection and disbursement in Nigeria, which sees the implementation of automated management of enforcement and monitoring services through E-Tech’s Sentinal National Payment Gateway Platform.
About Sentinal
The unique Sentinal transaction processing system enables integrated payment service providers which deduct or charge taxes at the point of transaction and instantly remit those tax funds to Government Treasury accounts.
Phase 1 of the Agreement
The first phase of the Nigeria projects is launching an initiative from the National Lottery Regulatory Commission of Nigeria designed to attract Tier 1 offshore global gaming operators to apply for five-year Permits to offer a full suite of gaming and sports-betting services to Nigerian players.
Applicants
Interested operators must comply with full risk-based AML screening and pass “fit and proper” tests demonstrating responsible gaming practices before being granted Nigeria’s Remote Operator Permit.
Streamlined Applications
Approved operators will connect to Sentinal, where appropriate gaming duties will be deducted from player deposits and remitted directly to the Government in real-time.
The Permit cuts out the bureaucratic process associated with operators incorporating locally. Operators qualifying through Sentinal must continue to comply with Permit Terms and Conditions to offer online gaming services to Nigerian players.
FIRS Spokesperson Speaks
Executive Chairman of the Federal Inland Revenue Service of Nigeria Mohammad Nami contextualised the partnership by saying:
The world is entering a challenging time where there is a strong obligation on Governments to increase tax revenue as a percentage of GDP to provide much-needed funding for local infrastructure and public services. Nigeria needs to innovate and harness technology to ensure that online transactions are taxed and accounted for.
Advantages
Nami said the FIRS are highly impressed with the Sentinal System due to the ability to leverage it to collect tax revenues “at source, but also provides us with tax reporting and monitoring tools in real-time.”
Nigeria’s In-House Technology
Nami further disclosed that the Sentinal System would be integrated with FIRS's own in-house TaxPro Max portal.
Outlook
With Nami among many Nigeria officials effusive in their support, this looks to be an integrated effort that will support a pioneering redemptive status for Nigeria in the iGaming space.
