ARTIFICIAL INTELLIGENCE AND TAX COMPLIANCE IN NIGERIA

This study examines the role of Artificial Intelligence (AI) in improving tax compliance in Nigeria. It aims to assess the current state of tax compliance, identify challenges in tax administration, explore AI applications in tax processes, evaluate their impact, and recommend strategies for effective integration. Primary data were collected from 100 respondents, including taxpayers and tax officials, using a structured questionnaire. The data were analyzed through descriptive statistics and hypothesis testing. The results indicate that tax compliance in Nigeria is moderate, hindered by challenges such as corruption, poor taxpayer education, and inadequate technology. The study finds that AI tools, including electronic filing (e-filing), automated reminders, data matching systems, and chatbots, can significantly enhance tax operations by reducing errors, increasing efficiency, and improving transparency. These findings suggest that AI adoption has a
positive effect on voluntary tax compliance. The study concludes that effective implementation of AI in Nigeria’s tax system can promote transparency, reduce evasion, and strengthen revenue collection. It recommends investing in AI infrastructure, staff training, public awareness campaigns, and establishing clear regulatory frameworks to ensure successful adoption.