Artificial Intelligence And Taxation In Nigeria

INTRODUCTION

Artificial Intelligence (AI) is no longer a futuristic concept—it is actively reshaping how business is done across multiple sectors, from fintech and healthcare to logistics and legal services. In Nigeria, both local startups and international companies are adopting AI technologies to improve operations, cut costs, and create new markets. These AI-enabled businesses are generating substantial revenue, but the legal and tax environment in which they operate has not fully caught up.

Most of Nigeria's tax framework was built around traditional businesses, where services are rendered by human workers, and taxable income flows from identifiable activities or physical establishments. This poses several challenges. Can AI, which independently performs functions once reserved for people, be treated as a taxable entity under Nigerian law? Should digital platforms that use AI to automate financial services be taxed the same way as banks or fintechs that rely