IMPACT OF TAX EDUCATION ON REVENUE GENERATION: A CASE STUDY OF MICRO, SMALL, AND MEDIUM ENTERPRISES (MSMEs) IN OGUN STATE

Abstract

This research examines the effect of tax education on revenue generation among Micro, Small, and Medium Enterprises (MSMEs) in Ogun State. Specifically, it explores the roles of tax awareness, tax education programmes, and tax knowledge in shaping tax compliance and enhancing revenue outcomes. Adopting a descriptive research design, the study collected data from 395 MSME operators located within Ogun State’s three senatorial districts using a structured questionnaire. The instrument’s validity was confirmed through expert evaluation, and reliability was established with a Cronbach’s alpha of 0.83. Data analysis involved descriptive statistics, correlation analysis, and multiple regression to assess the relationships between aspects of tax education and revenue generation. Findings indicated that tax awareness, tax education programmes, and tax knowledge all had strong positive associations with revenue generation among MSMEs. Notably, tax knowledge exerted the most significant influence, suggesting that MSMEs with greater tax literacy are more compliant, incur fewer penalties, and achieve higher profitability. Additionally, tax education programmes were found to significantly boost awareness and compliance, despite ongoing challenges related to accessibility and delivery. These results highlight the importance for policymakers and tax authorities to bolster tax education initiatives, expand taxpayer support, and enhance programme delivery to improve MSME compliance and revenue contributions. Overall, this study provides empirical evidence connecting tax education to improved revenue performance in Nigerian MSMEs. It addresses a critical gap in the literature by offering a comprehensive evaluation of how tax education affects both behavioural and financial outcomes for MSMEs in Ogun State.