• Tina O. ASHAFOKE University of Benin, Nigeria
  • Osasu OBARETIN University of Benin, Nigeria


The importance of revenue in a country cannot be exaggerated as the growth and survival of the nation is relying on tax revenue. Therefore, the need for a new source of internal revenue is not farfetched as Nigeria’s internally generated revenue is not enough to sustain the nation hence the borrowing from external sources. Tax revenue however has proven to be the most consistent and certain internal source of revenue.

With the increasing growth of the digital economy, which was accelerated by the pandemic, the taxation of this economy has been considered with evidence in the finance act of 2020 which speaks on significant economic presence instead of permanent establishment. This research attempts to investigate the effect of imposing a digital tax on digital channels on revenue generation in Nigeria using data collected from tax experts in Lagos state, Nigeria, via Google form. An exploratory research design is used, and data is analyzed using Structural Equation Model (SEM) via the STATA software for statistical analysis.

The study administered 200 questionnaires to respondents in FIRS and selected BIG4 auditing firms in Nigeria. The findings of the research show that there is a positive and insignificant relationship between revenue generation and tax e-commerce as well as between revenue generation and content providers. On the other hand, there is a positive and significant relationship between digital advertisers and revenue generation.

This study concludes that the imposition of digital tax on digital channels is strongly linked to revenue generation and will lead to an increase in revenue generation in Nigeria. The study thereby recommends that more focus and strategies should be put in place when collecting digital tax from digital channels.

Author Biographies

Tina O. ASHAFOKE, University of Benin, Nigeria

Department of Accounting

Osasu OBARETIN, University of Benin, Nigeria

Department of Accounting




How to Cite

ASHAFOKE, T. O., & OBARETIN, O. (2023). EFFECT OF DIGITAL CHANNEL AND REVENUE GENERATION IN NIGERIA. Journal of the Management Sciences, 60(2), 272–291. Retrieved from https://journals.unizik.edu.ng/jfms/article/view/2597