LEVERAGING DIGITAL TECHNOLOGY AND ENHANCEMENT OF TAX ADMINISTRATION PERFORMANCE IN NIGERIA: A CASE STUDY USING OGUN STATE

Abstract

This study examined the impact of digital technologies on tax administration performance in Nigeria, focusing on Ogun State as a case study. The analysis assessed the effects of electronic filing systems, electronic payment platforms, and digital taxpayer education platforms on efficiency, compliance, transparency, and revenue generation. A descriptive survey research design was used. Primary data were collected from 1,350 Ogun State Inland Revenue Service staff members using a structured questionnaire with a 5-point Likert scale. Experts validated the instrument and demonstrated high reliability, with a Cronbach’s alpha coefficient of 0.85. Descriptive statistics and multiple regression were used to evaluate the joint and individual effects of digital technology variables on tax administration performance. The results revealed that digital technologies significantly enhanced Ogun State’s tax administration performance. Electronic filing systems improved efficiency, accuracy, and transparency, while electronic payment platforms had the greatest impact by fostering timely, consistent tax compliance. Digital taxpayer education platforms increased taxpayers’ understanding of tax policies and voluntary compliance. Regression analysis indicated that digital technology variables collectively accounted for 61.0% of the variation in tax administration performance, resulting in the rejection of all null hypotheses. The findings revealed the need for sustained investment in digital tax infrastructure, capacity-building for tax officials, and expanded digital taxpayer education to strengthen revenue mobilization. This study provides subnational empirical evidence on digital tax administration in Nigeria and demonstrates the strategic importance of integrated digital technologies for effective tax administration reform in developing economies.