Boosting Tax Revenue in Nigeria: A Reflection of Revenue Authority’s Tax Monitoring Model

Abstract

The study examined the effect of tax monitoring and education on government’s internally generated revenue by State governments in Nigeria. To achieve the objective of the study, two hypotheses were formulated and stated thus:  There is no significant relationship between revenue authority’s tax monitoring and internally generated revenue and there is no significant relationship between education/literacy and internally generated tax revenue. Survey research design was adopted while the study objectives guided the empirical review. Primary data were collected using structured questionnaires, while formulated hypotheses were analyzed using regression and Pearson product moment correlation in SPSS. The result of the study showed that there was a significant positive relationship between continuous tax monitoring and internally generated revenue. The study also found out a positive relationship between tax education/literacy and tax compliance among tax payers. It was recommended that effective tax monitoring by the authorities and regular education of tax payers on the benefits of paying tax, would ensure improved revenue generation in Nigeria.

Keywords: Taxation, Revenue Generation, Tax Monitoring, Tax Education.