Effect of E-Taxation on Government Revenue in Nigeria

The adoption of electronic taxation (e-taxation) in Nigeria has been a significant development in the effort to modernize the tax collection process, improve efficiency, and enhance government revenue generation. This study investigates the effect of e-taxation on government revenue in Nigeria, focusing on its implementation, challenges, and outcomes. Through a review of relevant literature and analysis of available data, the research examines how the adoption of digital platforms for tax collection, such as the Integrated Tax Administration System (ITAS) and the Federal Inland Revenue Service (FIRS) e-filing system, has influenced tax compliance, collection rates, and revenue generation. The findings suggest that e-taxation has led to increased revenue collection due to improved transparency, reduced human error, and easier access to tax services for individuals and businesses. However, challenges such as inadequate infrastructure, internet connectivity issues, and low digital literacy among certain segments of the population hinder its full potential. The study concludes that while e-taxation has contributed positively to government revenue, further efforts are needed to address these challenges, including improved public awareness, better internet access, and stronger support systems for taxpayers. Recommendations are made for policy adjustments to enhance the effectiveness of e-taxation in boosting Nigeria’s tax revenue and contributing to sustainable national development.