The Role of Blockchain Technology in Enhancing Tax Transparency and Revenue Collection in Nigeria’s Oil and Gas Sector

Abstract

Nigeria's oil and gas sector has historically faced systemic inefficiencies, significant revenue losses, and ambiguous tax regulatory frameworks. However, blockchain technology presents a transformative opportunity with its decentralised and immutable ledger system, which can significantly enhance transparency and efficiency in tax collection. By exploring the potential of blockchain to automate compliance, reduce fraudulent activities, and strengthen accountability in Nigeria, this study adopts a 
doctrinal methodology to develop a roadmap for modernising tax administration in this sector. Despite these benefits, challenges such as regulatory uncertainty, infrastructure gaps, and steep implementation 
costs pose significant barriers to adoption. To effectively leverage blockchain, the writer emphasises the urgent need for Nigeria to prioritise legal reforms and invest in robust digital infrastructure. These actions are essential and urgent in fostering collaborative stakeholder engagement and overcoming the substantial barriers to adoption. This critical analysis scrutinises these challenges, identifies key implementation hurdles, and proposes actionable strategies for overcoming them.