IMPACT OF ELECTRONIC TAXATION ON REVENUE GENERATION IN NIGERIA PERSPECTIVE FROM FEDERAL INLAND REVENUE SERVICES

Abstract

This study examines the impact of electronic taxation on revenue generation in Nigeria, with a particular focus on the Federal Inland Revenue Service (FIRS). The rapid evolution of digital technologies has brought significant changes to tax administration systems worldwide, and Nigeria is no exception. The study investigates how the adoption of e-taxation has affected tax compliance, the efficiency of tax collection, and overall revenue generation. Specifically, it explores the relationship between e-taxation and tax revenue, evaluates the reduction in tax malpractice, and identifies the challenges impeding the successful implementation of e-taxation systems in Nigeria. Using both quantitative and qualitative research methods, the study gathered data from 325 respondents, including taxpayers, tax officials, and other stakeholders involved in the Nigerian tax system. The findings suggest a positive correlation between e-taxation and improved revenue generation, enhanced efficiency in tax collection, and reduced incidences of tax evasion. However, the study also highlights significant challenges such as inadequate digital infrastructure, low levels of digital literacy, and cybersecurity risks that hinder the full potential of e-taxation. Based on these findings, the study recommends measures to address these challenges, including the enhancement of digital literacy programs, investment in digital infrastructure, and stronger cybersecurity protocols. The study concludes that while e-taxation holds great promise for improving revenue generation, its success in Nigeria will depend on overcoming existing barriers to ensure broader accessibility and greater public trust in the system.