Federal Inland Revenue Service Research Articles

APPRAISAL OF INFLUENCE OF TAX-PRO MAX ADOPTION ON TAX ADMINISTRATION IN NIGERIA

This study aimed at appraising influence of the adoption of Tax-Pro Max on tax administration in Nigeria. It determined how Tax-Pro Max adoption had effect accountability for taxes, curb tax avoidance and evasion and reduction in fraudulent malpractices. Survey research design and judgemental sampling techniques were employed for the study. The population for the study consisted of Federal Inland Revenue Service (FIRS) Officials, Corporate Taxpayer, Tax Consultants and Accountants, Auditors, Managers and Owners of SMEs who were in Ibadan, Oyo State. The sample size selected for the study was 200 based on stratified random sampling technique. Data were collected with the aid of a structured questionnaire which use 4 likert-scale for measurement. Data gathered through 179 questionnaires retrieved from the respondents were used for the analysis. Descriptive statistics of percentages, mean and standard deviation were used to analyze respondents’ opinions to the questionnaire using 4 Likert scales while linear regression was used for hypotheses testing. Regression analysis results confirmed that TaxPro Max adoption enhance tax remittance accountability, curb tax avoidance and evasion and reduce tax fraudulent malpractices with (F value = 1501.79, p = .000), (1170.05, p = .000) and (F value = 1314.7, p = .000) respectively. These results showed that TaxPro Max adoption significantly influence tax administration in Nigeria. The study recommends that government should enactment laws which will regulate the operation of TaxPro Max system in Nigeria to avert unnecessary legal dispute and strengthen legitimacy of the system.

EFFECTS OF DISAGGREGATED TAX REVENUES ON ECONOMIC GROWTH IN NIGERIA (1995-2023): ARDL BOUND TEST APPROACH

<p>Tax revenue has been a great tool of fiscal policy harnessed toward the economic development of a nation. Its different components have collective effects on the economic growth of a nation. This study examined the effects of disaggregated tax revenue on Nigeria's economic growth from 1995 to 2023. The data was sourced from the Central Bank of Nigeria and the Federal Inland Revenue Service databases. This study examined the effects of disaggregated tax revenue on Nigeria's economic growth from 1995 to 2023. The data was sourced from the Central Bank of Nigeria and the Federal Inland Revenue Service databases. Employing multiple regression analysis within an Autoregressive Distributed Lag (ARDL) model, the study assessed the impact of Value Added Tax (VAT), Companies Income Tax (CIT), Petroleum Profit Tax (PPT) and Personal Income Tax (PIT) on economic growth. The diagnostic tests confirmed the model's validity, with unit root tests showing that all variables, except PIT, achieved stationarity after differencing. The findings revealed that each tax revenue component positively influences economic growth. Based on these results, the study recommends enhancing the legal and regulatory frameworks for businesses, including regular evaluations and updates of tax laws and stronger enforcement mechanisms. It also underscores the need to strengthen anti-corruption efforts, promote property rights, uphold the rule of law, and prioritise good governance to foster public confidence and ensure the effective use of tax revenues for economic development.</p><p><strong>JEL: </strong>C32, H20, H24, H25</p><p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/soc/0785/a.php" alt="Hit counter" /></p>

A compliance and audit model for tackling tax evasion in Nigeria

Tax evasion remains a significant challenge for Nigeria, undermining economic stability and reducing public revenue. This paper proposes a comprehensive compliance and audit model designed to address tax evasion in Nigeria. The model integrates enhanced compliance strategies, advanced audit procedures, and the strategic use of technology to create a robust framework for tackling tax evasion. The proposed model emphasizes proactive measures to improve taxpayer compliance through targeted education and outreach programs, streamlined reporting processes, and incentivization. On the audit front, it advocates for the adoption of sophisticated audit techniques and technologies, including data analytics and automated systems, to detect and address evasion more effectively. The implementation framework outlines a phased approach involving key stakeholders such as the Federal Inland Revenue Service (FIRS), local tax authorities, and the private sector. By examining domestic and international case studies, the paper highlights successful practices and potential challenges, providing actionable insights for adapting these strategies to the Nigerian context. Evaluation metrics are proposed to assess the model’s effectiveness, with expected outcomes including improved tax revenue, enhanced compliance rates, and strengthened public trust in the tax system. The study concludes with recommendations for further research and policy adjustments to refine and expand the model's application. This approach aims to not only mitigate tax evasion but also contribute to a more transparent and equitable tax system in Nigeria.

Impact of Tax-based Revenue on Economic Development in Nigeria, 1999 to 2023

This research measures the contributory impact of Tax-based revenue on economic development in Nigeria, 1999 to 2023, with a specific focus on the nuanced dynamics of oil-based tax (OBT), non-oil-based tax (NOBT), and aggregate tax revenue (ATR). Leveraging comprehensive data extracted from the Central Bank of Nigeria's Statistical Bulletin and Federal Inland Revenue Service (FIRS) database, the study employs the Autoregressive Distributed Lag Model (ARDL) with Gross Domestic Product Growth Per Capital (GDPPC) as the outcome variable. The empirical analysis supports a significant and positive impact of non-oil-based tax revenue on GDPG while the oil-based tax shares no significant impact on economic development. Also, aggregate tax revenue (ATR) was found to negatively but significantly impact on economic development. The study recommends the adjustment of the tax system to address the developmental constraint on investment and consumption posed by taxation while optimizing the benefits that accrue from an efficient and good tax system.

Impact of Tax Revenue on Income Inequality and Poverty in Nigeria

This study is on the impact of tax revenue on income inequality and poverty in Nigeria from 1995 to 2022, variables used are total tax revenue as the independent variable, poverty rate and income inequality proxy by Gini coefficient as dependent variables. Multiple taxation, corruption, value added tax, policy failures and inefficient fiscal operations are identified by this study as contributive factors to income inequality and poverty in Nigeria. The findings revealed that the relationship between total tax revenue and poverty rate is positive (as against apriori expectations). The estimated results are R2 at 0.626243 and adjusted R2 0.588253 which are the coefficient of determination or explainability of the independent variable (TTR) for the dependent variable (GIN), 63% of the changes in the dependent variable (GIN) is caused by changes in (TTR). The study concluded that tax revenue has a significant positive impact on poverty rate and income inequality in Nigeria. Major recommendations are that the Ministry of Finance, the Federal Inland Revenue Service (FIRS) the state board of Internal Revenue Service, the Joint Tax Board (JTB) should improve the dividend of taxation through accountability, transparency, better revenue generation and tax revenue expenditure on infrastructure and basic services.

Effect of Federal Government Tax and Non-Tax Revenue on Economic Growth in Nigeria

The objective of this study was to analyse the influence of tax and non-tax revenue generated by the federal government on the economic growth of Nigeria. The study utilised an ex post facto approach and specifically examined the Nigerian economy as a whole, resulting in a population and sample size of one. Data was collected from secondary sources, including the yearly reports and statistics releases of the CBN and the office of the Federal Inland Revenue Service (FIRS). The study spanned a decade, specifically from 2001 to 2020. The hypotheses were tested using simple linear regression for data analysis. The regression study revealed a substantial influence of federal government tax income on economic growth. The F-statistic yielded a value of 466.0399, the P-Value was determined to be 0.000, and the R-squared value was calculated as 0.962813. These results indicate that about 96.28% of the variability in real GDP can be accounted for by tax revenue. Similarly, the analysis demonstrated a substantial impact of non-tax revenue from the federal government on the growth of the economy. The F-statistic yielded a value of 201.5388, the P-Value was found to be 0.000, and the R-squared value was determined to be 0.918010. These results indicate that about 91.80% of the variance in real GDP can be accounted for by non-tax revenue. Moreover, the economic growth was significantly influenced by the overall revenue of the federal government. The F-statistic yielded a value of 469.5482, indicating a strong statistical significance. The P-value was 0.000, further confirming the significance of the results. The R-squared value was 0.963081, indicating that approximately 96.31% of the fluctuation in real GDP can be accounted for by total tax revenue. These findings emphasise the essential importance of both tax and non-tax revenue, namely from the federal government, in stimulating economic growth. In order to increase revenue generation, it is crucial for the government to give priority to enhancing tax administration and compliance. This can be accomplished by implementing efficient tax regulations, streamlining tax procedures, and establishing strong monitoring and enforcement measures. Furthermore, it is advisable to diversify non-tax revenue streams beyond oil.

Taxes and Health Infrastructural Development in Nigeria

This study investigated the effect of taxes on health infrastructural development in Nigeria. The objectives of the study among others were to determine the effect of company income tax on health infrastructural development in Nigeria, evaluate the effect of petroleum profit tax on health infrastructural development in Nigeria. Four research questions and four hypotheses were formulated as a guide for the study. This study adopted ex post facto research design and secondary data were collected from the National Bureau of Statistics, Federal Inland Revenue Service (FIRS), Central Bank of Nigeria (CBN) and Federal Ministry of Finance. The study was for forty-one (41) years from 1982 to 2022. This study utilized descriptive statistics, unit root test and ordinary least square regression method of data analysis with the aid of E-View 12. The findings of the study were that company income tax is statistically positive and significant on health infrastructural development in Nigeria, customs and excises duties is statistically positive and significant on health infrastructural development in Nigeria, petroleum profit tax is statistically negative and significant on health infrastructural development on health infrastructural development in Nigeria is statistically negative and insignificant, and value added tax is statistically negative and insignificant on health infrastructural development in Nigeria. Hence, study concluded that the federally collected taxes influence health infrastructural development in Nigeria. From 1982 – 2022. Consequently, the study suggested amongst others that, government should intensify efforts at developing the level of health infrastructure in the country through optimal tax revenue mobilization because, the study affirmed that company income tax and customs and excise duties positively and significantly impact on health infrastructural development in Nigeria.

Taxes and Road Infrastructural Development in Nigeria

This study examined the taxes and road infrastructural development in Nigeria. The specific objectives of the study among others were to determine the relationship between of company income tax on road infrastructural development in Nigeria, ascertain the relationship between petroleum profit tax on road infrastructural development in Nigeria. Four research questions and four hypotheses were formulated as a guide for the study. This study adopted ex post facto research design. The population of the study was conducted on Federal Republic of Nigeria under the National Bureau of Statistics, Federal Inland Revenue Services, Central Bank of Nigeria (CBN) and Federal Ministry of Finance. The study period covered was forty-one (41) years spanning from 1982 to 2022. This study utilized Descriptive statistic, Unit Root Test and Ordinary Least Square Regression method with the aid of E-View 12. The findings of the study showed a positive and significant relationship between company income tax on road infrastructure in Nigeria; customs and excises duties positively and significantly affects road infrastructure in Nigeria; petroleum profit tax negatively and insignificantly affects road infrastructure in Nigeria and finally, value added tax negatively and insignificantly influence road infrastructure in Nigeria is statistically negative and insignificant. The study concluded that taxes such as company income tax, custom and excise duties affects road infrastructural development in Nigeria for the period spanning from 1982 – 2022. Therefore, the study suggested amongst other that, government should intensify efforts at developing the level of infrastructure in the country through tax payers’ revenue because, this study affirmed that company income tax and customs and excise duties positively and significantly affects road infrastructure in Nigeria

IMPACT OF MISMANAGEMENT AND EMBEZZLEMENT OF PUBLIC FUNDS ON GOVERNMENT PARASTATALS

This study examines the impact of mismanagement and embezzlement of public funds in government parastatals using Federal Inland Revenue Service (FIRS), Abuja as a case study. The study employs the survey descriptive research design. A total of 85 respondents were selected as the sample size comprising staff of Federal Inland Revenue Service (FIRS), Abuja. Seventy-one (71) responses were validated from the survey. The findings reveal that the nature of mismanagement and embezzlement of the funds in the public sector is prevalent at (β = 0.912, R2 = 0.948, P = .000) and show that there are factors that enhance mismanagement and embezzlement of the fund in the government parastatals at (β = 0.892, R2 = 0.937, P = .000). It is found that mismanagement and embezzlement have a significant effect on the public fund in government parastatals (β = 0.887, R2 = 0.936, P = .000). It is also found that the extent to which financial irregularities and corrupt practices affect public service delivery (β = 0.896, R2 = 0.952, P = .000). Therefore, the study recommends the establishment of a strong penal code system to enforce laws and rules as sternly as the need for adequate punishment for offenders on corruption and related matters on fund embezzlement is paramount and germane.

A review of the powers of the federal inland revenue service vis-à-vis rights to privacy and information

On the 31st day of May, 2021 the Federal High Court in Nigeria issued a practice direction that is described as The Federal High Court of Nigeria (Federal Inland Revenue Service) Practice Direction, 2021 with 1st day of June, 2021 as its effective date of take-off. Since the publication was released, multiple debates on the constitutionality and legality of some of the provisions of the practice direction continue to generate concerns among taxpayers and the general public. This paper is an examination of the constitutionality or otherwise of the rights to privacy of taxpayers and issues regarding taxes in Nigeria. The paper made further examination of the powers of the FIRS to access tax payers records and the challenges of tax assessment by taxpayers, possible rights of the taxpayers and the responsibility of FIRS as the authorized revenue collecting body of the Federal Government of Nigeria among other related issues. The paper adopts the doctrinal methodology through the X-ray of primary and secondary sources with available data in the area. This paper finds that probing, searching and revenue generation concepts for proper tax administration of Nigeria and for the purpose of generating revenue and increasing the internally generated revenue of the nation and the rights to privacy of taxpayers and the rights of FIRS to administer tax in Nigeria needs to be regulated by the courts.

A Critical Examination of the E-Taxation, Improvement in Tax Compliance and Revenue Collection of Economic Development in Nigeria: An Examination covering 2008 to 2023.

This study looked into the topic of e-taxation and enhanced tax compliance in Nigeria. The study aimed to achieve two particular goals. It investigated the impact of e-taxation on tax evasion in Nigeria, as well as the extent to which e-taxation has contributed to the reduction of tax avoidance in Nigeria. The study's analysis used secondary quantitative data from the Federal Inland Revenue Services (FIRS) and the National Bureau of Statistics (NBS). The study found that e-taxation had a considerable beneficial impact on tax evasion in Nigeria. The study found that the mean value of tax revenue increased after the implementation of e-taxation when compared to the mean value before the adoption of the e-taxation system. It also indicated that e-taxation has greatly helped in curbing the issue of tax evasion in Nigeria. The data analysis revealed a greater mean value for tax revenue following the implementation of e-taxation as compared to the mean value before the e-taxation system. The report provided numerous important recommendations, including the necessity for FIRS to develop an electronic tax payment system mobile App that will raise awareness and simplify the country's e-tax system. This study concluded that the e-taxation system in Nigeria achieves higher tax compliance than the manual approach.

Influence of Strategic Alliance on the Performance of Federal Inland Revenue Service (FIRS)

Strategic alliances are collaborative relationships aimed at achieving mutual strategic objectives in order to achieve organizational performance objectives. Strategic alliances emphasis in literature has been significantly tilted towards private business enterprises and multinational companies. Yet, little is known about how strategic alliances work within governmental bodies like the FIRS. The purpose of this article is to examine the influence of strategic alliances on performance of the Federal Inland Revenue Service (FIRS). The study uses simple percentage count and standard deviation to analyze primary data obtained through questionnaires (google forms) from a sample of selected senior staffs at the Federal Inland Revenue Service South West zone which is made up of thirty (30) FIRS offices having a total of two hundred and seventy nine (279) respondents using purposive sampling method. Also, correlation coefficients, t-test, regression analysis and ANOVA was used to demonstrate significance. Result showed that strategic alliances/collaborations significantly and positively impact FIRS performance (F= 489.672, P0.00) in terms of tax revenue generation, voluntary tax compliance and widening of the tax net. It therefore recommends that techniques and strategic measures should be maintained to enhance the management of all collaborations for sustained performance of FIRS in Nigeria.

Workforce Diversity and Organisational Development: A Study of Federal Inland Revenue, Abakaliki, Ebonyi State, Nigeria

Organizations all over the world are facing many challenges in the management of their workforce. One of the challenges is workforce diversity. Thus, because they are recruiting people from different backgrounds. The paper sought to examine the effects of workforce diversity in the federal inland revenue service Abakaliki. The broad objective of the paper is to examine the effect of workforce diversity in organizational management. The specific objectives are to find out whether workforce diversity brings about industrial harmony or disharmony; to ascertain the effects of managing multicultural organization and to examine the impacts of workforce diversity in the organizational development of federal Inland Revenue Service Abakalliki. Content Analysis was used in the study. This is because the study relies mainly on secondary data. Situational theory propounded by Fieldler, A (1967) was used as the basis upon which the framework of the study is hinged. The paper after analyses found that workforce diversity is an inevitable organizational challenge if organizations are recruiting workforce from diverse environments etc. The study therefore recommended that management should brace up for the challenges of managing multi-cultural organizations among others. The study implies that as many people from different strata of society are employed in organizations, workforce diversity, and conflicts are inevitable. The only panacea for the problems is to develop an organizational culture to is attuned to relativism; the failure of which industrial disputes, chaos, and mutual suspicion are evident. Received: 23 March 2024 / Accepted: 30 April 2024 / Published: 5 May 2024

Income Tax Rate Regimes and Financing Decisions of Quoted Agricultural Companies in Nigeria

The purpose of the study was to examine income tax rate regimes and financing decisions of quoted agricultural companies in Nigeria. The specific objectives were as follows: to ascertain the extent to which company income tax rate regimes influence equity financing decision of the Nigerian quoted agricultural companies, to determine the extent to which company income tax rate regimes influence debt financing decision of the Nigerian quoted agricultural companies, and to investigate the extent to which company income tax rate regimes influence retained earnings financing decision of the Nigerian quoted agricultural companies. The study employed an ex-post facto research design in carrying out the study. Data for this study were gathered from secondary sources of data. The research data were obtained from various secondary sources which include Central Bank of Nigeria Statistical Bulletin, Central Bank of Nigeria Annual reports, Federal Inland Revenue Service (FIRS) revenue statistics as well as other researchers’ journals and publications. The study employed regression models for the purpose of the study. The major findings of this study showed that CIT1 had a positive and insignificant effect on company financing decisions, CIT2 had a negative and insignificant effect on company financing decisions, and CIT3 had a positive and significant effect on company financing decisions. Arising from the results obtained, the study makes the following recommendations: Government should make it possible for companies to evade tax and penalize any registered company that evades tax.

Examining the Relationship Between Personnel Training and Development and Employee Performance In Federal Inland Revenue Service, a Study of Kaduna Coordination Office

This study examined the relationship between personnel training and development and employee performance in Federal Inland Revenue Service Kaduna Coordination office. The study identified and analyzed the problem of the study such as increased in competition and services resulting from changes in technology, economic activities, globalization etc. The objective of the study was basically to ascertain the relationship between personnel training and development and workers’ performance. The study formulated a research question and hypothesis in line with the objective of the study. Related concepts of the study were explored and reviewed; Kirkpatrick’s learning and evaluation theory was used as theoretical framework. This study adopted quantitative research design. Data were collected from 241 valid questionnaires using simple random techniques. Hypotheses were tested by the use of simple linear regressions at 0.05 (5%) level of significance. However, version 23.0 statistical packages for social sciences (SPSS) program were used for processing and analyzing of data. The study findings also revealed that personnel training and development has a significant relationship on employee performance in FIRS. This proved that we should reject the null hypotheses of this study which stated that personnel training and development has insignificant relationship on employee performance. Furthermore, the study concludes personnel training and development enhances performance and recommended that there should be improvement in training especially on ICT and new management system.

Tax Revenue and Economic Growth in Nigeria: A Bi-Directional Approach

The study examined the bi-directional effect of tax revenue and economic growth in Nigeria from 2011 to 2022 by employing total tax revenue and nominal Gross Domestic Product at current price. Data was extracted from 2011 to 2022 quarterly reports published on the website of the Central Bank of Nigeria, National Bureau of Statistics and Federal Inland Revenue Service. Unit Root test using Augmented Dickey-Fuller (ADF) test shows that at the first difference, the variables are stationary at 1%, 5%, and 10% level of significance while Engle and Granger co-integration test reveals significant evidence of a long-run relationship between the variables of the study’s models. Findings from Error Correction Model (ECM) estimation show that Total Tax Revenue has a positive and significant effect on Nominal Gross Domestic Product (t-stat 4.777; P-value 0.000) and Nominal Gross Domestic Product has a positive and significant effect on Total Tax Revenue (t-stat 5.552; P-value 0.000). The Granger Causality test revealed that there exists a positive and significant bi-directional effect between Total Tax Revenue and Nominal Gross Domestic Product in Nigeria. The study concludes that tax revenue has a positive and significant effect on economic growth and economic growth has a positive and significant effect on tax revenue. The study recommends that the government ensure continuous economic growth by providing human capital, security, employment, and foreign investment. This would increase the standard of living of citizens, increase tax payer’s income, and attract foreign investors who would pay tax on their income and properties.

Taxation and Socio-Economic Development in Nigeria

The study examined the linkage between taxation and socio-economic development in Nigeria. The study employed a descriptive research design using secondary data collected from various issues of the Central Bank of Nigeria, Planning, Research and Statistics Department, National Bureau of Statistics and Federal Inland Revenue Service bulletins. The study focused on a five year time series study from 2017 – 2021. The study was anchored on the socio-political theory of taxation and the study methodology involved the review of extant literature on two groups of taxes: oil and non-oil taxes and how they are used to bring about socio-economic development proxied by GDP expenditure at constant purchase prices. The review revealed that tax revenue had positive relationships with socio-economic development, but they are grossly inadequate to meet up with GDP expenditures. The study concluded that tax revenues are under generated in relation to crude sales. It was recommended that among others that the government should engage in a complete re-organization of tax administrative machinery to reduce poor documentation of tax receipts, incidence of tax evasion and avoidance to the barest minimum to improve tax revenue and bring more taxpayers into the tax radial in order to enhance socio-economic development.

Transfer Pricing Documentation Methods in Nigeria: A Critique of the Prime Plastichem Case Against International Best Practices

The quest to ensure that the tax planning activities of multinational enterprises operating in Nigeria do not erode the country's domestic tax base has led to the enactment and enforcement of the Transfer Pricing (TP) Regulations, 2018 in Nigeria. The TP Regulation provides for a comprehensive framework to ensure that the pricing of related party transactions is consistent with global best practices on TP. The enforcement of the TP Regulation in Nigeria was taken a step further in 2020 when the Tax Appeal Tribunal affirmed the imposition by the Federal Inland Revenue Service (FIRS) of liability of over one billion naira on Prime Plastichem Nigeria Limited for failing to apply consistent TP methods in the financial years 2013 and 2014. While this decision was hailed as Nigeria's first decision of the Tax Appeal Tribunal (TAT) dealing with transfer pricing, the decision has been criticised for failing to apply the global standards for TP documentation. This article seeks to critique the principles of TP documentation espoused in the Prime Plastichem case vis-à-vis international best practices on transfer pricing documentation.

Testing the Causal Nexus Between Tax Revenue and Human Development in Nigeria

We examined the effect of tax revenue on human development in Nigeria in this study. To carry out this study, we use Companies’ income tax, petroleum profit tax, value added tax, and customs and excise duties tax revenue on per capita income for the period 1990 to 2021. Ex-post facto research design was employed for the study. Secondary data from the Central Bank of Nigeria (CBN) statistical bulletin, Federal Inland Revenue Service (FIRS) reports and the World Banks database was used. Several statistical and econometric techniques were applied to analyze the data. Findings from the study revealed that tax revenue in the long and short run had an insignificant effect on human development (proxied with per capita income) in Nigeria. Based on the findings, it was recommended that government should invest tax revenue on the health system in form of providing adequate health infrastructures, provision of relevant and specialized manpower in the health sector, and provide adequate sensitization on healthy lifestyles that would promote increased life expectancy in Nigeria. Lastly, government should invest tax revenue in creating awareness on the benefits of early child enrolments in schools, provide adequate incentives to motivate teachers to deliver on the job and build conducive learning environments that will encourage students to engage in learning.

E-Tax Compliance in Nigeria: Implications for Company Income Tax and Petroleum Profit tax

This work examines the effect of e-tax compliance in Nigeria: Implication on Company Income Tax and Petroleum Profit Tax. As Nigeria's economy continues to evolve in the digital age, the taxation landscape has seen significant changes with the advent of e-tax compliance. This work therefore aims to explore the implications of e-tax compliance on two key revenue streams for the Nigerian government: Company Income Tax (CIT) and Petroleum Profit Tax (PPT). The study reveals that the amount of capital gain tax revenue before (before the arrival of e-taxation) and after (after the advent of e-taxation) shows a positive, negligible difference and that the Petroleum Profit Tax also has a positive negligible difference between pre- (before the advent of e-taxation) and post- (after the advent of e-taxation). The study concluded that the transition to electronic tax compliance in Nigeria has been driven by the need for efficiency, transparency, and improved revenue collection. It has not only streamlined the tax assessment and payment process but has also increased the government's ability to monitor and collect taxes from this lucrative industry. Federal Inland Revenue Services should develop measures to ensure that defaulters are brought to book and dealt with in accordance with the laws, in addition to establishing a collaborative pattern between the government, Federal Inland Revenue Services, and Nigerian taxpayers to enable them to observe any difficulty felt by the taxpayers or the shortcomings besetting the effectiveness of the system.