Digitalisation of Tax collection and Tax Revenue in Nigeria

Authors: Ibrahim, Nimmo

Affiliation: Economic Department, Niger Delta University, Wilberforce Island, Amassoma, Bayelsa State

Corresponding Author: [email protected]

April 15, 2026

SIAR-Global Journal of Economics, Finance & Accounting

DOI: 10.5281/zenodo.19597946

Digitalisation of Tax collection and Tax Revenue in Nigeria

Research Article Management

Abstract

This study investigated the impact of digital tax collection on tax revenue in Nigeria. This study adopted a survey design with a population of 11,449 Federal Inland Revenue Service (FIRS) staff of 2022. The sample size was randomly determined by Taro Yamane to be 386. The data were collected through the administration of online questionnaire to the staff of FIRS across the six geopolitical zones of the Federal Republic of Nigeria. Descriptive statistic and Ordinary Least Square (OLS) data analysis techniques were employed at 0.05 level of significance. The results revealed that expansion of consumption tax has positive (+0.016, P = 0.0000) and significant impact on tax revenue in Nigeria, digital services tax also has positive (+0.050, P = 0.000) and significant impact on tax revenue in Nigeria, digital permanent establishment has positive (+0.137, P = 0.000) and significant impact on tax revenue in Nigeria, while (+0.059, P = 0.091) gross based withholding tax of digital services has positive but not significant impact on tax revenue in Nigeria. The R-Square indicated that about 75.6% variation of tax revenue is attributed to expansion of consumption tax, digital services tax, and digital permanent establishment. The study concluded that expansion of consumption tax, digital services tax, and digital permanent establishment as proxies of digitalisation of tax collection are the most efficient measures of collecting tax to boost tax revenue under digitalization of tax collection in Nigeria. Based on the findings of this study, it can be recommended that Nigeria government and tax authority should broaden its tax policies to include all digital economic activities.

Keywords

Digitalisation, Tax Revenue, Consumption Taxes, Digital Service Taxes

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Ibrahim, Nimmo (2026). Digitalisation of Tax collection and Tax Revenue in Nigeria. SIAR-Global Journal of Economics, Finance & Accounting, Vol. 2, No. 1. DOI: 10.5281/zenodo.19597946

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Digitalisation of Tax collection and Tax Revenue in Nigeria

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