Electronic Payment System and Revenue Generation in Lagos State

Adegbie; Folajimi Festus; Akinyemi; Oluwaseun Olabosipo

Electronic Payment System and Revenue Generation in Lagos State

Adegbie, Folajimi Festus & Akinyemi, Oluwaseun Olabosipo

Abstract

Revenue generation has become a huge challenge considering the high level of corrupt practices prevalent in the electronic payment revenue generating government agencies. Studies have shown that many electronic revenue generating agencies have experienced decline in revenue generated which had resulted in huge losses to Lagos state government because of high rate of corruption, embezzlement, illiteracy level of electronic payment users. Not many studies considered electronic payment through ATM and ETC in increasing revenue generation through personal income tax, rates and penalty. The study evaluated the effect of electronic payment on revenue generation in Lagos State. The study adopted a survey research design. The population was 4275 staff among the six selected revenue generating agencies in Lagos State. The sample size was 366 derived using Taro Yamane sampling statistics formula. A structured questionnaire was used to collect data with reliability coefficient range from 0.71 to 0.93. The retrieval rate was 100%. The geographical location of reference of the study is Lagos state which has a population of about 21 million people. In order to reach a reasonable conclusion, the percentage frequency table, analysis of variance (ANOVA) and the multiple linear regression technique methodologies were adopted to test the hypotheses. The study found out that electronic payment variables (ATM and ETC) have significant and positive effect on personal income tax(AdjR2= 0.515, F-statistic= 85.011 and p-value=0.000); epayment has significant and positive effect on rate(AdjR 2= 0.918, F-statistic=2055.871 and pvalue =0.000) and lastly, e-payment has significant and positive effect on penalty (AdjR2=0.638, F-statistic= 323.040, p-value=0.000) It was also discovered that beta1ATM = 1.224 and that of beta2ETC= -0.075 and it implied that ATM has positive and significant effect on revenue from penalty but ETC has a negative effect.

Keywords

Electronic payment systemrevenue generationautomated teller machine(ATM)electronic transfer card(ETC)personal income taxratespenalty

References

Aamir, M., Qayyum, A., Nasir A., Hussain, S., Khan, K. I. & Butt, S. (2011). Determinants of tax revenue: A comparative study of direct taxes and indirect taxes of Pakistan and India. International Journal of Business and Social Science, 2(19), 173- 177. Adam, B. (2016). Internally generated revenue and electronic payment in Nigeria, Journal of Business and Statistics, 23(1), 23-26. Adenuga, B. & Ogechi, D. (2015). The role of electronic payment in enhancing revenue generation in Nigeria. Journal of Accounting and Finance, 2(6), 12-23. Agba, D. (2016). Implications and challenges of e-payment system. 12th March, 2019. Retrieved from file htt://www.itnewafrica.com Agba, N. & Obi, G. (2016). The role of electronic payment in enhancing revenue generation in Nigeria. Journal of management, 1(4), 29-33. Agimo, T. (2015). Better Practice Checklist for ePayment. Australia Government Information Office. Retrieved 14 February 2019, Ahmad, M. & Baer, E. (2015). Advancement of the payment system in Colombia and revenue generation. International Journal of Arts and Commerce, 1(6), 186-194. Aizenman, I. & Jinjarak, B. (2018). Electronic Commerce; A Manager's Guide. Reading: Addison Wesley. Akintoye, L. & Tashie, G. (2015). Personal Income Taxation in Nigeria Including Capital Gains Tax. Lagos; JAANigeria. Alake, S. & Olatunji, V. (2016). Impact of electronic taxation on tax evasion and avoidance. (A Case Study of Nigerian Banks). International Journal of Current Research in Multidisciplinary (IJCRM), 2(2), 19-26. Alao, T. (2018). Electronic Payment System in Nigeria: Implication, Constraints and Solutions, Journal of Management and Society, 1(2), 16 – 21 Amieva-Huerta, G. (2017). Electronic payment system and revenue generation: A comparative study between Mexico and Western economies. Aneke, S. (2017). Individual tax payers’ attitude and compliance behavior in Nigeria: The moderating role of financial condition and risk performances. Journal of Accounting and taxation Vol. 3(5), 35-46. Appah, B. (2015). Advancement of the payment system in Colombia and revenue generation. International Journal of Arts and Commerce, 1(6), 186-194. Aregbeyen, B. & Fasanya, T. (2017). E-payment-Stakeholders worred over switching system. International Journal of Economic Development Research and Investment, 1(1), 227-239. Asaolu, T., Dopemu, S. & Monday, J. (2015). Impact of Tax Reforms on Revenue

Electronic Payment System and Revenue Generation in Lagos State

Abstract

Keywords

References

More Articles from JOURNAL OF ACCOUNTING AND FINANCIAL MANAGEMENT