Assesment of Value Added Tax and Performance of Government Revenue Agency: a Study of Firs Sokoto

Student: AISHA HABIB ADO (Project, 2025)
Department of Accounting
Usmanu Danfodio University, Sokoto, Sokoto State

Abstract

The study aims to assess the challenges and factors affecting the generation of Value Added Tax (VAT) revenue in Nigeria, with a specific focus on the Federal Inland Revenue Service (FIRS) in Sokoto State. Utilizing questionnaires as the primary data collection instrument, the research reveals that while VAT is effective means of boosting government revenue, significant issues such as smuggling, inadequate professional training and insufficient dissemination of VAT related information hinder its potential. Findings indicate a consistent positive revenue trend since the introduction of VAT, underscoring the critical role of well trained personnel and effective information dissemination in achieving revenue targets. The study concludes that VAT is an equitable tax system capable of enhancing revenue generation in Nigeria, provided that strategic reforms are implemented. The study recommends stricter anti-smuggling measures, enhanced training programs for revenue officers, better motivation through incentives and increased awareness of VAT compliance benefits. These steps are essential for optimizing VAT revenue collection and ensuring sustainable fiscal outcomes for the country.

Keywords
assesment value added performance government revenue agency sokoto
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