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Tax Administration and Revenue Performance: An Influence of Tax Assessment in Local Government Areas in Nigeria

Ibama, K.C.K PhD, Nwaba, Evans PhD, David Kennedy Dokubo PhD

Abstract

This study examined the relationship between tax assessment practices and tax revenue generation in Local Government Councils of Rivers State, Nigeria. The objective was to determine how effective tax assessment influences two major sources of internally generated revenue: tenement rates and market levies. The study adopted a correlational research design using a cross-sectional survey. A sample of 243 respondents was selected from nine Local Government Revenue Boards in Rivers State through simple random sampling. Data were collected using a structured questionnaire and analyzed with descriptive statistics and regression analysis at a 0.05 significance level. Findings revealed that tax assessment practices have a significant and positive relationship with both tenement rates and market levies. Specifically, results showed that tax assessment explains 35% of the variations in tenement rate performance and 81% in market levies, indicating that transparent and efficient assessment systems substantially improve local revenue generation. The study concludes that effective tax assessment remains a major determinant of fiscal performance and sustainability at the local government level. It recommends the adoption of digital assessment tools, continuous capacity development for tax officials, and enhanced taxpayer education to promote equity, transparency, and voluntary compliance. Strengthening these mechanisms will enhance internally generated revenue, reduce dependence on federal allocations, and support sustainable grassroots development in Rivers State.

Keywords

Tax AssessmentTenement RatesMarket LeviesTax AdministrationInternally Generated RevenueLocal GovernmentRivers State.

References

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