Tax Digitization and Revenue Generation in Nigeria

The study evaluated the effect of tax digitalization on revenue performance in Nigeria from 2010 to 2023. Tax digitalization was proxied by Company Income Tax (CIT) and Value Added Tax (VAT). The period of digitalization commenced from 2010 to 2023. The design, therefore, examined significant differences in the effect of CIT and VAT on the Nigerian Federal Tax Revenue (FEDREV) between the post-period, 2017 -2023, and the pre-period 2010 to 2016 of tax digitalization. Ordinary Least Square (OLS) regression model was utilized in estimating the effect of tax variables on Nigerian FEDREV, while the Chow test was employed in analyzing the significance of the differences observed in the effect of tax variables on the FEDREV between the pre and post-periods of tax digitalization and also used in testing the hypotheses of the study. Findings revealed that CIT and VAT, revenue effect on the Nigeria FEDREV significantly differed between the pre- and post-periods of tax digitalization. This posits that revenue outcome tax variables after digitalization were significant to the FEDREV. The study therefore recommended the formation of a federal fiscal system that would guarantee the full potential of tax digitalization in Nigeria in enhancing revenue performance.