COMPLIANCE MEASURES AND TAX REVENUE IN NIGERIA

Abstract

Nigeria, a country with a monoculture and an oil-based economy, began borrowing money to
support the economy as its resources began to decline due to global oil rivalry, falling oil prices,
and other issues. This borrowing was unsustainable since government debt was piling up,
burdening future generations with debt, and instilling fear and a lack of trust in the economy
among the populace. This analysis was required due to the ongoing fluctuations in the price of oil
throughout the world and the Nigerian government's efforts to find alter With particular goals
including figuring out the relationship between tax enforcement measures dimensions and
business income tax, value-added tax, and hydrocarbon tax, the study examined the relationship
between tax enforcement measures and revenue generation in Nigeria. This study evaluated the
effects of enforcing the payment of Value Added Tax, Hydrocarbon Tax, Companies Income Tax,
etc. in Nigeria in order to address these and other issues. The study used data from secondary
sources and conducted the assessment using a descriptive methodology. According to the study,
there is minimal tax income in Nigeria due to a high rate of non-compliance and disinterest. The
few compliant taxpayers, nate means of raising public income to cover its expenses. Consequently
there is a significant tax gap. Based on the findings, it is determined that in order to enforce the
payment of Companies Income Tax, it is necessary to bring the remaining taxpayers in Nigeria
into the tax system. This may be done by imposing penalties and interest on tax defaulters,
among other enforcement methods. The report suggested that in order to promote tax auditing,
the Nigerian government should review its approaches to tax enforcement. To make sure that the
amount of tax reported and paid complies with tax rules and regulations and tax enforcement
measures like interest and penalties, a taxpayer's company records and financial affairs should be
inspected on a regular basis. Penalties should be applied to tax defaulters in order to enforce
discipline and motivate compliant taxpayers, guaranteeing the availability of funds for the
government to fulfill its obligations to all citizens. Potential tax evasion is discouraged more when
the penalty rate is higher. It is thus advised to choose a larger penalty rate.