TREND ANALYSES OF INTERNALLY GENERATED REVENUES OF SELECTED STATES IN NIGERIA PRE AND POST DIGITALIZATION OF TAX ADMINISTRATION
Sani Damamisau Mohammed , Ruqayya Tijjani Ibrahim , Muhammad Muhammad Sallau , Yusuf Abdu Gimba and Aishatu Danjuma Adam
Volume 2 Issue 2
Abstract
Taxation of individuals and corporate organization remains the most viable and sustainable source of income to governments. However, state governments in Nigeria that constitute the second tier of government in the federal structure are heavily dependent on federal allocations from the centre; thus, constantly surviving on rising fiscal deficits with mounting domestic debts. This is despite the existence of eleven taxes and levies specified as collectable by state governments in the levies and taxes Act 1998. To improve their fiscal capacities, state governments have started digitalizing their tax administration to assist in establishing standard data base of tax payers, improve compliance and enhance Internally Generated Revenue generation. The most important step towards the digitalization of tax administration is having standard data base of tax payers as such through issuance of Taxpayers’ Identification Number. Therefore, the aim of this study is to longitudinally analyze the Internally Generated Revenues (IGR) of selected states pre and post digitalization. To achieve this aim, secondary data on IGR of selected states are collected from the National Bureau of Statistics 2009-2020, collected data was analyzed by means of descriptive statistical tools while Adaption theory and Public policy analytical framework underpins the study. Overall, results from the study revealed increasing trends of IGR, while IGR collections post exceeds pre-digitalization collections as confirmed by paired sample t-test. The policy implication of this is for state governments to promulgate enabling laws on digitizing tax administrations while state revenue authorities should strengthen their digitization efforts to enhance their IGR collections. Key Words: Taxation, Tax Administration, Digitalization, Longitudinal, Adaption Theory
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