Nigeria's taxman wants a peek

Nigeria’s taxman wants to view your VAT payments in real-time

Here’s what’s happened: The Federal Inland Revenue Service (FIRS), Nigeria’s tax agency, has rolled out a real-time portal that forces card networks, banks, fintechs, and payment service providers to upload every VAT-eligible transaction to its dashboard.

The new transaction monitoring system is the taxman’s most aggressive step yet at closing tax gaps in the country's booming digital economy.

How it works: Institutions will connect to the portal through APIs, transmitting each VAT-eligible payment to FIRS before it is completed. These financial institutions must send each payment's gross value, VAT amount, and merchant info to the portal.

If VAT wasn't collected upfront, providers must calculate it on the transaction value and deduct it. The portal then groups and logs entries, giving FIRS live visibility on what's taxable, and enabling the tax body to reconcile invoices, monitor compliance, and standardise records across millions of microtransactions.

Here’s why it matters: Before now, FIRS was unable to monitor the taxes deducted on VAT-eligible transactions—what the agency describes as the single biggest leakage point for consumption taxes. By deploying this technology, the agency plugs a hole in this leak. .

What will this mean? Users will see stricter VAT deductions on even the smallest online payments. Platforms and fintechs face tighter scrutiny, higher compliance costs, and daily penalties for delays, while the government gains stronger oversight and less tolerance for unreported or 'grey area' transactions. .

This rollout is a decisive shift in Nigeria's tax enforcement. Whether it builds trust or fuels resistance will depend on how seamlessly the system runs and how openly FIRS addresses public concerns.

On Thursday, Google committed $37 million for AI research, talent development, and infrastructure needed to advance the continent’s AI future.

This announcement coincided with the launch of an AI Community Centre in Accra, a hub for training and collaboration among stakeholders interested in exploring how AI can address Africa’s unique needs.

Why does it matter? Delays in Africa’s AI progress are often attributed to infrastructure and funding gaps External funding is a crucial step in overcoming some of these funding gaps. Before this $37 million funding announcement, Google also launched an accelerator program in June for 15 startups driving AI innovation for African problems. These investments signal Google’s long-term strategy to combine philanthropy and commercial tools needed to support AI solutions built in Africa for African issues.

There’s more: The funding includes $25 million to support researchers and nonprofits developing AI tools that enhance food security on the continent, as well as a $3 million fund for the Masakhane African Languages AI hub to expand research to include over 40 African languages in datasets and voice AI technologies. In Ghana, Google will also offer 100,000 fully funded, self-paced programs to train students in tertiary education on AI and Prompting Essentials, Cybersecurity, and Data Analytics. Additionally, Google will award $1 million in research funding each to two research institutions in South Africa to support local research capacities.

Big Picture: Beyond altruism, Big Tech is investing early in the race for founders, research projects, and infrastructure that could shape the continent's AI trajectory. In June, Meta also recently concluded a call for African startups developing locally relevant AI applications that address key sectors, including education, healthcare, and agriculture.These investments are crucial to securing Africa’s AI market, which is expected to be worth $4.92 billion this year.

InkBlot Studios, a Nigerian filmmaking company, and Filmhouse Group, West Africa’s largest cinema chain, are joining forces to launch Kava, a streaming platform focused on African stories.

The team plans to launch in August 2025 with over 30 premium titles and weekly releases.

Why are they doing this? Streaming is now central to Nollywood's future. In Nigeria, the over-the-top video market is projected to reach $1.22 billion in 2025. As global interest in Nigerian content continues to rise, investors are betting big on African entertainment by backing films directly. In 2023, VC firm Voltron Capital reportedly achieved up to 3x returns on projects like The Black Book and Gangs of Lagos. And then there is TalentX Africa, a film-financing marketplace, which has invested close to $1 million in Nollywood. Filmhouse and InkBlot want to capture that demand and build a platform that scales African films.

Who is Kava up against? Global heavyweights like Netflix and Amazon Prime are already in the market, but with limited reach—reports suggest Netflix has under 170,000 Nigerian subscribers, while Amazon Prime counted about 575,000 subscribers across Africa in 2021. Even then, both platforms have slowed investments in the region.

Zoom out: Although YouTube remains the most accessible platform for Nollywood films. Kava must offer something beyond what these platforms already deliver. If Kava can balance consistent quality and pricing, it could build the momentum it needs for its planned Africa and UK expansion. But if adoption lags, that ambition might stall before it really begins.