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As Nigeria intensifies its drive for improved tax collection, a new platform is emerging to help businesses navigate the complexities of compliance through automation.
By
AU-Startups · Forest
Nigeria is actively bolstering its tax enforcement mechanisms, a move that places a renewed focus on compliance for businesses across the nation. In response to this evolving regulatory landscape, TaxStreem, a Nigerian startup, has launched an automated tax compliance platform designed to simplify and streamline tax obligations for businesses, from small and medium enterprises (SMEs) to larger corporations. This development aligns with the Nigerian government's broader objective to enhance tax collection and modernize its revenue system.
The Nigerian government has been working to improve its tax-to-GDP ratio, which has historically been among the lowest globally. Efforts to formalize the informal economy and expand the tax net have been ongoing, with initiatives like the Nigeria Tax Administration Bill 2024 and the Nigeria Revenue Service (Establishment) Bill 2024 aiming to create a more unified and efficient tax structure. As of January 1, 2026, the Federal Inland Revenue Service (FIRS) has transitioned into the Nigeria Revenue Service (NRS), assuming full responsibility for assessing, collecting, and enforcing federal taxes. The Joint Revenue Board (JRB) has also replaced the Joint Tax Board (JTB) to harmonize tax policies and coordinate administration across all government levels.
At the heart of TaxStreem's offering is an AI-powered platform that integrates with a business's existing financial tools, including bank accounts, accounting software, email, and WhatsApp Business. This integration allows for the automatic flow of transaction data into the platform, generating a unified financial dashboard that shows inflows, outflows, and associated tax obligations. For businesses with less digitized operations, manual data uploads are also supported.
Kelechi Ibe, co-founder of TaxStreem, a tax lawyer with over a decade of experience, noted that businesses often struggle to understand what to pay, where to pay, and how to organize financial records. "We built TaxStreem to remove that complexity by embedding compliance into the systems businesses already use to operate," Ibe said. The platform's proprietary tax intelligence, built on Nigerian tax law, automatically detects applicable taxes, identifies exemptions, and explains why specific tax obligations are triggered. This is particularly relevant as Nigeria's new tax regime requires small businesses to use an e-invoicing system from July 2027 for stricter compliance.
Sam Ayo, co-founder and CTO, a Senior AI and Machine Learning Engineer, highlighted the shift towards transaction intelligence in finance and compliance systems. "Tax compliance today still relies heavily on manual interpretation of complex rules across invoices and financial transactions," Ayo explained. "At , we built the system differently." The platform also features Martina, an AI chatbot that answers tax questions and provides insights into business performance based on transaction data.
This push for automated tax compliance comes at a time when Nigeria is actively seeking to increase its tax revenue, with company income tax (CIT) seeing a sharp rise in 2025. The government's reforms aim to protect low-income earners and small businesses while simplifying compliance for others. By reducing the administrative burden and potential for errors, platforms like TaxStreem could play a role in improving overall compliance rates and fostering a more transparent tax environment.
TaxStreem operates on a subscription model for businesses and also offers its Application Programming Interface (APIs) to fintech companies, digital banks, and other financial platforms looking to embed tax compliance directly into their products. This positions the startup as a key infrastructure layer in Nigeria's evolving RegTech landscape, supporting the transition towards more proactive tax management. The company has secured an undisclosed friends and family funding round, with plans to expand its offerings to include state-level tax filing.
For operators on the continent, the emergence of solutions like TaxStreem signals a growing opportunity in the RegTech space. As African governments continue to modernize their tax systems and intensify enforcement, businesses will increasingly seek efficient and automated ways to remain compliant. The success of such platforms will depend on their ability to seamlessly integrate with diverse business operations and adapt to evolving regulatory frameworks, offering a blueprint for similar innovations across other African markets facing comparable challenges.
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