Effect of E-Tax on Revenue Generation: A Perspective of the Nigerian’s Fiscal Drive (2013-2024)

Aug 3
2 min read

Updated: Aug 4

Authors: Adebayo Isaac Adesodun, Abiloro Rafiyat Bosede, Oyewole Oluwasogo Kazeem, Oshatimi Omowumi Olanike and Farinde Zainab

Abstract

In this study, the impact of E-tax on revenue generation was examined from the perspective of Nigeria’s fiscal drive from 2013 to 2024. The study applied an ex-post facto research design. The study considered secondary data spanning from 2013 to 2024 obtained from secondary sources, specifically the Central Bank of Nigeria (CBN) Statistical Bulletin, the Federal Inland Revenue Service (FIRS) annual reports, and official records from the Nigeria Customs Service (NCS). The estimation techniques for this study involves both descriptive and inferential statistical methods to provide a robust assessment of the effect of electronic taxation on revenue generation in Nigeria. Descriptive statistics and OLS estimation model were adopted for the study. Through the analysis conducted, it was established that there is a positive but insignificant effect of electronic payment of value-added tax on revenue generation in Nigeria to the tune of 0.341(p=0.2327>0.05). Also, it was revealed that there is a positive significant effect of electronic payment of company income tax on revenue generation in Nigeria to the tune of 0.8145(p=0.0073<0.05). In addition, it was established that there is a positive and a significant effect of electronic payment of capital gains tax on revenue generation in Nigeria to the tune of 0.347243(p=0.0024<0.05). Finally, it was unveiled that there is a positive but insignificant effect of electronic payment of customs and excise duty on revenue generation in Nigeria to the tune of 0.2464(p=0.8696>0.05. In accordance with the results, it is concluded that there is a statistical significance in the overall impact of electronic tax payment on the generation of federal revenues, thus, it is concluded that electronic tax payment systems, if managed well, can promote efficient tax payment processing, facilitate tax tracking and increase the fiscal capacity of the government.

Keywords: E-tax, Revenue Generation, Fiscal Drive, Value Added Tax, Company Income Tax, Capital Gains Tax, Customs and Excise Duty