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Effect of Digitalized Infrastructure on Tax Revenue Collection Of the Nigeria Revenue Service

Ajuonu Anulika Uche, Prof. Emeka-Nwokeji Nkechi and Prof. Agubata Stella N.

Abstract

The rate at which the country experiences revenue shortfall has made her to restort to means to block tax revenue leakages, mismanagement and misappropriation of tax revenue collection to boost her revenue. This study arises to investigate how digitalised tax infrastructure affects tax revenue collection of Nigeria Revenue Service. The study specifically examined e-tax filing, e-tax clearance certification, and juxtaposing revenue before and after digitalization. A mixed methods research design was used. (primary and secondary data). The population was 4,668 FIRS staff, with a sample size of 368; secondary data included revenue records from 2001 to 2024. Primary data were gathered through structured questionnaires, and secondary data were sourced from FIRS reports and the Central Bank of Nigeria. Hypotheses were tested using multiple regression for survey data and paired t-tests for revenue performance, at a 5% significance level. Findings showed, e-tax filing significantly affected tax revenue (β = 0.155, p = 0.017); e-tax clearance certification had a positive but non-significant effect (β = 0.137, p = 0.054) digitalised tax infrastructure significantly increased tax revenue, with mean revenue post-adoption (₦6.87 trillion) much higher than pre-adoption (₦1.215 trillion) (Mean Difference = ₦5.65 trillion, t = 3.517, p = 0.002) The study concludes amongst others that, digitalised tax infrastructures have transformed tax processes by enhancing revenue performance. Increase tax compliance. The study recommends that the Nigeria Revenue Service should link the e-tax services with BVN and other means of national identification to bring more people in tax net. Nigerian government should some incentives to e-tax service alongside making frugality in the revenue disbursement and provision of basic amenities.

References

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