TAX REFORMS AND REVENUE GENERATION IN NIGERIA.

Abstract

This study examined the stem relationship subsisting between tax reforms and revenue generation in Nigeria. The attention of research is targeted at just three areas such as tax rate adjustment, changes in tax policy, and tax administration efficiency. The aim and objectives are to check how some of these changes can affect tax reforms and revenue generation to increase the Gross Domestic Product percentages. Ex-post facto design and integrating survey were adopted for this study. Data from primary sources was sourced from 56 respondents, which includes tax administrators, accountants, practitioners, and auditors, and secondary data from 2013 to 2023 were sourced from the (FIRS) and Nigeria Bureau of Statistics (NBS). The researcher made use of Spearman’s rank correlation and regression analysis for the hypothesis testing, with results revealing that tax policy positively impacted the revenue to GDP percentage but displayed no significant relationship with tax revenue. In the same vein, tax rate adjustment showed a negative effect on revenue to GDP and a significant effect on tax revenue. Also, the tax administration didn’t affect tax revenue, which shows the reason for the total overhauling of tax reforms. Findings show that policy amendments can lead to an increase in tax revenue in gross domestic product, rate adjustment, and administrative inabilities that bring about serious challenges. The study concludes that a total method of tax reforms, rate maximization, policy enhancement, and administrative efficiency be put into action. The study recommends a careful calibration of tax rates and modernization of the tax collection system in Nigeria.