CORPORATE TAX COMPLIANCE AND REVENUE GENERATION IN NIGERIA: A STUDY OF THE FEDERAL INLAND REVENUE SERVICE (FIRS)

Abstract

This study investigates the role of the Federal Inland Revenue Service (FIRS) in promoting corporate tax compliance and enhancing revenue generation in Nigeria, with particular emphasis on Company Income Tax (CIT) between 2018 and 2023. In response to the country’s growing fiscal pressures and the need to diversify beyond oil revenue, several institutional reforms have been introduced by FIRS to strengthen compliance and broaden the tax base. Anchored on the Institutional Theory, the study explores how organizational structures, norms, and enforcement mechanisms influence compliance behavior and revenue outcomes. Using secondary data sourced from official FIRS publications, the study adopts a descriptive approach to analyze actual CIT collections relative to projected targets across the six-year period. The findings reveal a steady upward trend in CIT revenue, with significant performance improvements recorded in 2022 and 2023. These gains are attributed to administrative reforms, technological innovations, and improved enforcement strategies. However, inconsistencies in quarterly collections and the absence of published targets in certain years highlight lingering structural and reporting challenges. The study concludes that while FIRS has made notable progress in corporate tax administration, sustaining these gains requires strengthened taxpayer education and engagement, investment in digital infrastructure and staff capacity, and the promotion of voluntary compliance through simplified procedures and transparency, sustaining these gains requires a stronger emphasis on voluntary compliance, transparency, and institutional efficiency. The research offers insights for policymakers seeking to optimize tax performance as a tool for national revenue growth.