Effect of Digitalization on Tax Revenue Management in Nigeria

Abstract

This study examined the effect of digitalization on tax revenue management in Nigeria, with specific focus on taxpayer digital registration systems, ICT infrastructure readiness, and digital capacity of tax authorities.  The study adopted a cross-sectional research design, and data were collected from 261 tax officials drawn from the Nigeria Revenue Service (NRS), Federal Capital Territory Internal Revenue Service (FCT-IRS), and selected State Internal Revenue Services within the North Central geopolitical zone of Nigeria. A structured questionnaire using a five-point Likert scale was used as the research instrument. Data were analyzed using Structural Equation Modeling (SEM) with SmartPLS. The findings revealed that all dimensions of digitalization have a positive and significant effect on tax revenue management in Nigeria.  The study concludes that digitalization plays a critical role in strengthening tax revenue management in Nigeria. It recommends that government and tax authorities should invest in ICT infrastructure, enhance the digital skills of tax officials, and improve taxpayer digital registration systems to further strengthen revenue generation performance.