Tax risks management and non-oil revenue earnings in Nigeria

The research addressed the effects of tax risk management on the non-oil earnings of revenue in Nigeria between 1999 and 2022 to help improve strategies of revenue generation in the non-oil sector. In particular, it finds whether non-oil revenue is affected by compliance and auditing practices, the stability of tax policy, and taxpayer education, and whether the performance of non-oil industries is affected by tax incentives. It used an ex post facto research design. Utilizing secondary data sourced from the Central Bank of Nigeria (CBN) and the Federal Inland Revenue Service (FIRS), focusing on indicators such as government financial performance and non-oil tax revenue. Data analysis was done by using descriptive statistics, correlation analysis, unit root tests to test stability of data, and Generalized Linear Model (GLM) with Newton-Raphson and Marquardt steps as a method of the inferential statistics. The results identified that the increased tax compliance and efficient tax administration and yield affect tax revenue non-oil positively, which is consistent with the results of the previous researches that emphasize the importance of tax compliance and what degree of efficiency in administration of tax makes a difference. The research also demonstrates that the role of stable tax policies and taxpayer education as the measures to mitigate the risks of tax is significant to increase the non-oil revenue but the effect of the taxpayer education was not significant. The study also reveals that, there exists a positive relationship between tax incentives and non-oil sector performance, which is considered to be moderate supporting the fact that strategic tax incentives can trigger investment in a sector. The findings are in line with the public finance theory emphasizing on the total tax risk management as a means of enhancing non-oil revenue, which leads to fiscal stability and economic growth. The researchers end the research with the recommendation that to enhance the tax structure of Nigeria, there should be integrated risk management plans that will eventually make it less likely that the nation relies on oil revenue and lead to sustainable economic development.