DIGITALIZATION OF TAX ADMINISTRATION AS EMERGING GLOBAL BEST PRACTICE: AN ASSESSMENT OF DIGITALIZATION OF TAX ADMINISTRATION BY STATES IN NIGERIA

Sani Damamisau Mohammed ,Baraatu Bala Adamu , Yusuf Ibrahim Karaye , Mohammed Abdullahi , Nasiru Aminu Ibrahim , Ahmad Abdullahi Hashim and Aliyu Abubakar
Volume 9 Issue 2

Abstract

State governments in Nigeria are continuously facing serious budgetary financing challenges due to insufficient funds coming from the centre and apparent lack of commitment to raise taxes. However, to address the financial difficulty facing them, State governments in Nigeria have started digitalizing their tax administrations in 2009. Digitalization of tax administrations is found capable of broadening tax bases, easing assessment and collection of taxes for both tax payers and tax administrations and increases tax collections. The state governments have targeted to achieve online registration, filling, payment, and verification of payments and ability of taxpayers to raise complaints on all tax matters. Therefore, the aim of this paper is to assess the level of digitalization of tax administration by state governments in Nigeria and the impact of the digitalization on revenue generation over the years. While the envisioned levels of digitalization of tax administration are used as benchmark to assess the digitalization, statistics of tax collections from the National Bureau of Statistics are used to measure the impacts of the digitalization. Descriptive statistical tools of tables and charts are used to present collected data while Adaptability theory and public policy analytical framework guides the conduct of the study. Results from the study revealed that the state governments are increasingly digitalizing their tax administration which has been increasing their tax collections. The policy implications of these findings are that state governments should sustain their tax digitalization efforts which may be a panacea to tight financial difficulties they are continuously facing over the years. Key Words: Digitalization, Tax Administration, State Governments, Global Best Practice, Adaptability Theory

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