Fending off accusations of targeting the poor, theFederal Governmenthas unveiled a sweeping plan to utilise a central database compiling information from phones, bank accounts, travel records, and business registrationsto identify and tax Nigerians currently skirting their obligations.

Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele,outlined the strategyduring the National Summit of Fiscal Responsibility in Abuja on Friday.

According to Oyedele, thecentralised database willleverage the National Identification Number (NIN) for individuals and Business Registration Numbers for companies.

This system, he said,willcross-reference information such as phone spending habits, bank account balances and travel recordstoidentify potential tax discrepancies.

Oyedele explained: “The system will identify an individual who spends N4m on groceries annually across multiple bank accounts but reports only N20,000 in income. This inconsistency will trigger a reconciliation process.”

He emphasised thesystem wouldnot rely solely on individual reports bututilise “third-party information” to verify income streams.

“When you import 1,000 mobile phones, the government is aware,” he said. “This information will be linked to your business records, ensuring a complete picture of your transactions.”

Theplanalso introducesVAT fiscalisation, a system that automatically transmits a copy of every sales invoice to the government.

“If you refuse to use the official invoice system,” Oyedele warned, “the discrepancy between reported sales and issued invoices will expose unreported income.”

Oyedelealso offered an insight into the Committee’s strategy to secure political endorsement for the reforms.

He revealed that the committee developed a narrative thatappealed to politicians’ reelection priorities.

“We highlighted the exemption increase for low-income earners as a policy protecting the poor,” he said. “This messaging resonated with politicians facing upcoming elections, making the reforms more attractive.”

Thegovernment’s commitment to this data-driven approach to tax collectionsignals asignificant shiftin itstax enforcement strategy. Thesuccess of this initiativehinges onpublicacceptanceandeffective implementationtobroaden the tax baseandgeneratemuch-needed revenuefor the nation’s development. (The Nation)