Digital Transformation and Tax Revenue Performance: An Empirical Analysis of Nigeria’s Federal Inland Revenue Service

Abstract

This study examines the effect of digital transformation of tax administration and tax revenue performance : A study of Federal Inland Revenue Service in Nigeria focusing on e-tax payment, filing, clearance certification, and registration, as well as revenue performance before and after digitalization. Using a mixed-methods approach with survey data from Federal Inland Revenue Service staff and secondary revenue data spanning 2001–2024, the findings reveal that e-tax filing and e-tax registration significantly enhance tax revenue, while e-tax payment and clearance certification show positive but non-significant effects. Overall, tax revenue increased substantially following the adoption of digital tax systems, indicating that digitalization has improved efficiency, broadened participation, and reduced manual inefficiencies in revenue administration