Technology-Based Innovations and Tax Compliance in Nigeria

Inefficiency, corruption, and limited transparency in Nigeria’s traditional tax administration present challenges to tax revenue generation. This study examined the relationships between technology-based innovations, tax compliance, and revenue generation, focusing on electronic tax payment, electronic processing of value-added tax (VAT) returns, electronic filing of pay-as-you-earn (PAYE) returns, and electronic personal assessment. A descriptive survey design was adopted. Questionnaires were administered to 150 selected personnel of Nigeria’s federal revenue authority and relevant tax practitioners, yielding 144 valid responses for analysis. Data were analyzed using descriptive statistics, analysis of variance, and multiple regression with SPSS. The findings indicated that all four technology-based innovations were positively and significantly associated with tax revenue generation. These results suggest that digital tax administration has the potential to support more effective revenue collection. The study highlights the importance of strengthening digital tax platforms, improving user support and taxpayer awareness, expanding secure electronic payment channels, automating VAT and PAYE return processing, and simplifying electronic personal assessment. These priorities provide practical directions for improving tax administration and supporting voluntary compliance and revenue mobilization in Nigeria.