Digital Tax Applications and Tax Revenue Generation in Nigeria
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Date
2025-12
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Lead City University, Ibadan
Abstract
The study examined Digital Tax Applications and Tax Revenue Generation in Nigeria. Specifically, determined the effect of Integrated Tax Administration System on tax revenue generation in Nigeria; determined the effect of the Standard Integrated Government Tax Administration System on tax revenue generation in Nigeria; and examined the relationship between Tax Pro-max system and tax revenue generation in Nigeria. Data were collected across five (5) countries (i.e, Nigeria, the U.S, the U.K, Irish, and Germany). The data were collected for the period of 1990 – 2024 from the FIRS audited annual report, CBN statistical bulletin, Internal Revenue Service (U.S), HM Revenue & Customs (U.K), The Revenue Commissioners (IRISH), ELSTER / Federal and State Tax Authorities (Germany). Mixed research design was used, while the work leveraged the technology acceptance model. The population consisted of 10,336 tax officers and 41,000,000 taxpayers in Nigeria. The sample size of 400 was determined using Taro (1967) formula and on the basis of stratified sampling as the populations of the tax officers and the taxpayers are heterogeneous in nature. The hypotheses were tested using Ordinary Least Square. The findings that the ITAS exhibits (β2 = 4.659414, p = 0.0366), indicating that it was highly significant at the 5% level. This suggested a high and positive correlation between the adoption of ITAS and the generation of tax revenue in Nigeria during the study period. The findings on the hypothesis indicated that the Standard Integrated Government Tax Administration System (SIGTAS) (β3 = -2.74, p = 0.0435) and thus statistically significant at the 5% level. This indicated a strong but negative effect, hence, adoption of SIGTAS could have transitioned inefficiently which weakened its effect on tax revenue in Nigeria. The hypothesis indicated that Tax
Pro-Max exhibits (β4 = 11.39948, p = 0.0016), reflecting strong statistical evidence of significant effect on tax revenue generation. This signified that the adoption of Tax Pro-Max has significant effect on tax revenue generation, arguably due to improved compliance, mechanisation, and efficiency of the digitalised process. The study concluded that the necessity of sustained investments in digital tax infrastructure, the execution of coherent implementation frameworks, and the advancement of complementary institutional reforms to optimise the fiscal sustainability of digital taxation and ensure the sustainability of Nigeria’s tax revenue architecture is progressively improving through the prevailing digital tax application process. The study recommended that the government should invest in robust ICT infrastructure to ensure seamless operation of systems across all tax offices in Nigeria; establish regular monitoring and evaluation assessments for ascertaining the performance and impact of the tax promax for making more improvements in time; the tax pro-max should be continuously updated because of their positive impacts to handle more taxpayer interactions
and data complexity; taxpayers should be educated on utilising digital platforms effectively to facilitate voluntary compliance and reduce errors when filing; taxpayers' data should be secure, digital tax policies should be flexible enough to take in new technology and taxpayer trends; provide comprehensive training to FIRS staff to utilize, troubleshoot, and optimize digital tax platforms.
Keywords: digital tax applications, ITAS process, SIGTAS process, Tax promax, tax revenue.
Word Count: 500
Description
Keywords
digital tax applications, ITAS process, SIGTAS process, Tax promax, tax revenue.
Citation
kate Turabian