Digital Tax Systems and Revenue Collection Efficiency

This study examined the effect of digital tax systems on revenue collection efficiency in Nigeria, focusing on electronic tax filing systems, electronic payment platforms, taxpayer digital registration and identification systems, and automated tax assessment and reporting systems. The research was motivated by persistent inconsistencies in revenue collection efficiency and administrative leakages within the Nigerian tax framework despite ongoing digital reforms. Anchored on the Technology Acceptance Model (TAM), the study adopted a qualitative research design. Primary data were gathered via a structured questionnaire administered to a sample of 384 respondents, comprising officials of the Nigeria Revenue Service (NRS) and active taxpayers, yielding 383 valid observations, which were analysed using Ordinary Least Squares (OLS) regression. The empirical findings revealed that
electronic payment platforms and taxpayer digital registration and identification systems have positive and statistically significant effects on revenue collection efficiency, indicating that secure payment channels and robust databases enhance tax administration, curb revenue diversion, and improve taxpayer tracking. Conversely, electronic tax filing systems and automated tax assessment and reporting systems exhibited positive but statistically insignificant relationships with revenue collection efficiency. This insignificance highlights operational constraints, such as technical system errors, infrastructure deficits, and limited user adaptability, that hinder the full realisation of the benefits of automated assessment and e-filing. The study concludes that while digital tax systems are vital mechanisms for maximising revenue performance, their efficiency gains depend heavily on the reliability of the infrastructure. It is recommended that tax authorities invest in robust digital infrastructure to eradicate system downtime, strengthen secure payment integrations, expand the taxpayer database, and enhance digital literacy among administrators and taxpayers.