E-tax Payment and Non-Oil Revenue in Nigeria

Abstract

This study assessed how electronic taxation (e-tax) affects non-oil revenue generation in Nigeria. The pre and post study employed an ex-post facto research design, using secondary data from the Federal Inland Revenue Service (FIRS) and Central Bank of Nigeria Bulletin from 1994-2023. The population of the study consisted of the entire revenue from non-oil sources and the study sample involved the complete enumeration method. Data for the study on company income tax, value -added tax and education tax were obtained from the platform of Federal Inland Revenue Service (FIRS) and Central Bank of Nigeria. Descriptive statistics and paired sample t-tests were carried out and the adjusted R2 of 0.93 and 100.98 from dummy variables revealed that while there was a positive, though statistically insignificant impact of the e-tax system on revenue generation, indicating a significant improvement in tax productivity. The study recommends that the e-tax system needs to be customized for SMEs by designing simplified e-tax platforms specifically for small and medium-sized enterprises (SMEs) to ease their compliance burden. Public awareness and education campaigns should also be created to help inform taxpayers about the benefits and usage of the e-tax system.