Factor Analysis of Government Performance and Tax Morale in Nigeria

Abstract

The paper made a factor analysis of the variables that shape the tax morale of individuals indeveloping economies as well as the factors that citizens considered to be important inassessing government performance. Data from the Afrobarometer Survey 6 Questionnaireadministered on Nigerians was used for the analysis. Desk review of several journal articleswas made to extract the relevant factors used for the study. A collection of variables offeredin the literature as determinants of tax morale and the aspects of government that are measuredwhen assessing government performance were synthesized as measurement parameters. Bothexploratory and confirmatory factor analyses were conducted using principal componentanalysis. The study established that the data from Afrobarometer Survey 6 on Nigeria wasfound reliable with adequate goodness of fits, which is significant for any study. The paperfound six of the items on the questionnaire suitable to measure tax morale and ten other itemssuitable as measures of government performance under three dimensions as an improvementon economic issues, infrastructure provision, and social issues. The paper recommends thatthe government and other policymakers should pay sufficient attention to tax morale and theperformance of government, especially adequate provision of food and improving the standardof living among the poor citizens before attempts at controlling crime.