Flutterwave and FIRS partner to revolutionise tax collection in Nigeria

Flutterwave, Africa’s foremost payments technology company, has partnered with the Federal Inland Revenue Service (FIRS) to digitise tax collection across the nation. Announced today, this collaboration could redefine how Nigerians interact with their tax obligations, bringing a new level of efficiency, transparency, and accessibility to a system often criticised for its complexity and inaccessibility, particularly for rural citizens and the diaspora.

By leveraging cutting-edge technology, Flutterwave aims to bridge the gap between taxpayers and the government, potentially setting a precedent for digital governance in Africa.

The partnership introduces a suite of innovative features designed to simplify tax compliance. Taxpayers can now access multiple digital payment options, including mobile platforms, and benefit from real-time reporting and tracking of their payments. Perhaps most strikingly, the offline capabilities, a feature tailored to serve Nigeria’s vast population in areas with limited internet connectivity.

For a country where cash remains king and internet penetration varies widely, this hybrid approach could prove transformative.

“At Flutterwave, we are committed to leveraging technology to drive efficiency and economic growth,” said CEO Olugbenga ‘GB’ Agboola in a statement. “By making tax payments easier and more transparent, we are helping to digitise government collections and support national development, which is in line with our mission.”

His words reflect a broader vision: transforming a bureaucratic necessity into a seamless, technology-driven process that empowers both individuals and businesses.

What Flutterwave’s entry means for the Nigerian tex sector

The implications of this partnership extend beyond convenience. For the FIRS, which has long grappled with inefficiencies in revenue collection, Flutterwave’s secure and robust payment infrastructure could significantly boost compliance rates. Businesses, ranging from small and medium enterprises (SMEs) to large corporations, as well as individual taxpayers, can now pay taxes, levies, and other statutory fees with unprecedented ease.

Nigerians in the diaspora, often disconnected from domestic financial processes, also stand to benefit from a system that allows them to fulfil their tax obligations remotely and securely.

Olufunmilayo Olaniyi, Flutterwave’s Senior Vice President of Business Development, emphasised the strategic importance of this collaboration.

“Working with the public sector is pivotal to shaping the future of digital payments in Nigeria,” she noted. “This underscores our commitment to delivering solutions that serve Nigerians better, foster trust, and drive impactful innovation through strategic collaboration.”

Her remarks highlight a growing trend of public-private partnerships aimed at addressing systemic challenges in Nigeria’s economy, especially in a country where tax-to-GDP ratio hovers around 6%,  (one of the lowest in the world) a statistic often attributed to widespread evasion and an opaque collection process.

This initiative aligns with broader governmental efforts to modernise tax administration. The FIRS is already gearing up to launch its “e-Invoice” platform in July 2025, a pilot program designed to enhance invoice management and provide real-time visibility into business transactions. The platform, combined with Flutterwave’s payment solutions, signals Nigeria’s aggressive push toward a fully digital tax framework.

Flutterwave’s role in Nigeria’s financial landscape has been expanding rapidly. Beyond this tax-focused partnership, the company has forged alliances that amplify its influence in digital innovation and security. In 2024, it teamed up with the Economic and Financial Crimes Commission (EFCC) to establish a Cybercrime Research Centre at the EFCC Academy, reinforcing its dedication to financial integrity.

Earlier this year, Flutterwave joined forces with the National Information Technology Development Agency (NITDA) and Alami to empower SMEs in the tech and creative industries, further cementing its status as a catalyst for digital transformation.

This partnership aims to reshape the public perception of taxation. By introducing offline payment options and real-time tracking, Flutterwave and FIRS are not only addressing logistical barriers but also building trust, a critical factor in a country where tax evasion has historically been a challenge. As Nigeria navigates economic reforms and seeks to bolster its fiscal health, this collaboration could serve as a model for other African nations looking to modernise their revenue systems.