Press the extra firm tofu to remove excess moisture, then crumble it into small, bite-sized pieces using your hands or a fork.
Heat the extra virgin olive oil in a large pot over medium heat.
Add the diced yellow onion, red bell pepper, and zucchini to the pot and sauté for 5-7 minutes until the vegetables are softened and fragrant.
Stir in the minced garlic and crumbled tofu, cooking for another 5 minutes until the tofu edges are slightly golden.
Add the chili powder, ground cumin, smoked paprika, sea salt, and black pepper, stirring well to coat the tofu and vegetables in the spices.
Pour in the tomato sauce, water, and nutritional yeast, then stir to combine all ingredients.
Reduce the heat to low and simmer the chili for 15 minutes, allowing the flavors to meld and the sauce to thicken before serving.