DIGITALIZATION OF TAX SYSTEMS AND ITS EFFECT ON TAX COMPLIANCE: EVIDENCE FROM NIGERIA’S E-TAX PLATFORMS
Denis Basila, PhD and Isa Jarengol
Volume 14 Issue 2
Abstract
Tax compliance remains a persistent challenge for developing economies, particularly in Nigeria where informal economic activities dominate. This study examines the relationship between the digitalization of tax systems and tax compliance behavior among Nigerian taxpayers, with specific focus on the adoption and usage of electronic tax (e tax) platforms by the Federal Inland Revenue Service (FIRS) now Nigerian Revenue Service (NRS) and State Internal Revenue Services (SIRS). Using secondary data from government reports, the World Bank’s Doing Business Indicators, and compliance statistics from NRS (2015–2024), the analysis reveals that increased digitalization significantly improves voluntary tax compliance, reduces administrative bottlenecks, and enhances revenue performance. The article recommends further investments in digital infrastructure, taxpayer education, and data security to maximize compliance benefits. Findings contribute to ongoing policy discourse on digital tax administration in sub Saharan Africa. Keywords: Digitalization, Tax Compliance, E Tax Platforms, Nigeria, FIRS, Tax Administration
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