E-Tax System and Government Tax Revenue Generation in Nigeria: A Comparative Analysis of Pre and Post
Keywords:
Electronic taxation, petroleum profit tax, companies income tax, value added taxAbstract
Electronic tax platforms have transformed tax administration in many countries by improving efficiency, transparency, and compliance. However, in Nigeria, the contribution of tax revenue to broader economic performance has not been as visible as expected. This study therefore examined how the introduction of the electronic tax system has influenced revenue mobilization from petroleum profit tax, companies income tax, and value added tax between 2005Q3 and 2024Q4. To compare outcomes before and after the rollout of e-taxation, the analysis applied the Mann–Whitney U test, a non-parametric approach suitable for assessing differences between two independent periods: the pre-e-tax phase (2005Q3–2015Q1) and the post-implementation phase (2015Q2–2024Q4). The empirical results indicate that electronic tax reforms have significantly strengthened revenue generation from companies income tax and value added tax. In contrast, petroleum profit tax did not show a statistically meaningful improvement under the e-tax regime. These results offer relevant insights for tax administration and policy design in Nigeria. They suggest that reform strategies may need to be tailored to the unique operational and structural features of each tax category to ensure that digital tax systems deliver optimal outcomes.
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