Tax Education and Voluntary Tax Compliance among Small and Medium Enterprises (SMEs) in South-West Nigeria: A Perception Study

Small and Medium Enterprises (SMEs) are vital to Nigeria's national growth, yet their compliance with tax obligations remains low, limiting government revenue. While enforcement has been widely studied, less attention has been given to tax education's role in shaping compliance. This study therefore investigated the effect of tax education on voluntary tax compliance among SMEs in South-West Nigeria. A survey research design was adopted. Data were collected using a structured questionnaires which was administered to SME operators across Lagos, Oyo, Ogun, Osun, Ondo, and Ekiti States using a stratified random sampling technique. Data were analysed using descriptive statistics and logistic regression models, guided by the Theory of Planned Behaviour. The findings revealed a positive and statistically significant relationship (p < 0.05) between tax education and voluntary compliance, confirming that improved knowledge directly increases taxpayers’ willingness to register, file, and remit taxes. While SMEs demonstrated moderate digital literacy and recognized taxation as a civic duty, challenges such as inadequate outreach and mistrust of government remain. The study concluded that tax education is a key determinant of voluntary compliance among SMEs in South-West Nigeria. The study therefore recommended that tax authorities should intensify taxpayer education campaigns, leveraging workshops, SME associations, government should continue efforts to simplify tax registration, filing, and reporting processes, and simplified digital platforms to foster higher compliance, sustainable revenue, and economic development.