Tax Administration, Corruption and its Effect on Revenue Generation in Oyo State Board of Internal Revenue

ADEOLA Olusola Olayinka; Fatoki Jacob Obafemi

doi:10.56201/jafm.vol.11.no10.2025.pg311.336

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Tax Administration, Corruption and its Effect on Revenue Generation in Oyo State Board of Internal Revenue

ADEOLA Olusola Olayinka, and Fatoki Jacob Obafemi

Abstract

Revenue generation in developing economies like Nigeria is hindered by inefficiencies in tax administration and pervasive corruption, undermining fiscal sustainability. The over-reliance on volatile oil revenue necessitates a shift towards internally generated revenue (IGR) to ensure stable fiscal strategies. Therefore, the study investigates the Tax administration, corruption and its effect on Revenue generation in the Oyo State Board of Internal Revenue. The research design was a survey method, utilising structured questionnaires to collect data. The population was the total workforce of the Oyo State Board of Internal Revenue (85 staff) and 200 randomly selected taxpayers in Ibadan metropolis, totalling 285 respondents. The sample was all 85 staff, using total enumeration, and 200 taxpayers, selected via random sampling based on tax payment, business activity, and compliance level. The research instrument was a questionnaire. The instrument was reliable with a Cronbach’s Alpha of 0.881. Data were analysed using SPSS for frequency tables and regression analyses. The results revealed that Regression analyses showed tax planning efficiency moderately impacts revenue (R = 0.315, R² = 0.099, F(1, 278) = 30.561, p = 0.000; B = 0.269). Tax collection effectiveness has a similar effect (R = 0.373, R² = 0.139, F(1, 278) = 44.956, p = 0.000; B = 0.271). Compliance levels (R = 0.527, R² = 0.278, F(1, 278) = 107.154, p = 0.000) and monitoring mechanisms (R = 0.524, R² = 0.275, F(1, 278) = 105.310, p = 0.000) show stronger influences. Tax administration is most impactful (R = 0.559, R² = 0.312, F(1, 278) = 126.212, p = 0.000). Corruption does not mediate this relationship (Indirect Effect = 0.0014, p = 0.9432). Effective tax administration, compliance, and monitoring significantly enhance revenue generation in Oyo State, with corruption having no notable mediating role, highlighting the need for robust administrative reforms. It was rec

Keywords

Tax AdministrationCorruptionRevenue GenerationTax PlanningTax Collection

References

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Tax Administration, Corruption and its Effect on Revenue Generation in Oyo State Board of Internal Revenue

Abstract

Keywords

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