Tax Enforcement and Tax Compliance in Southwestern Nigeria
Abstract
This study assessed the influence of tax enforcement on tax compliance in Southwestern Nigeria. A descriptive survey design was adopted. The study population comprised 1,146 NRS staff members, including tax controllers, heads of divisions, tax auditors, audit officers, and tax collector officers, all of whom play a direct role in tax auditing, enforcement, and taxpayer engagement. A purposive sample of 364 staff members was drawn from this population in Southwestern Nigeria, focusing on individuals whose roles provided them with direct insights into tax audit processes. The study focused on 360 staff members of the Nigeria Revenue Service (NRS) in Southwestern Nigeria. Data for the analysis were obtained through a structured questionnaire administered to the NRS staff. Analysis was conducted using Feasible Generalized Least Squares (FGLS). The results showed that Public Awareness and Education campaigns and Tax Rate Reduction policies, as enforcement-related strategies, had a significant positive effect on tax compliance. Legal actions, whistle-blower program and tax-amnesty instruments fail to reach significance, indicating weak or heterogeneous behavioral responses. The study concludes that enforcement strategies encompassing both persuasive/educational elements and incentive-based measures are significant drivers of improved tax compliance in the southwestern Nigerian context.
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