Osasu Obaretin

This study examined the relationship between tax evasion, government revenue generation, and public service delivery in Nigeria, with a particular focus on identifying the underlying causes of tax evasion and its implications for fiscal sustainability. The research employed a quantitative survey design, and data were collected through structured questionnaires administered to individuals, business owners, and government officials in Benin City, Edo State. A total of 360 valid responses were analyzed using descriptive and inferential statistics, including multiple regression analysis. The findings revealed that tax evasion in Nigeria is significantly influenced by corruption among tax officials, weak enforcement mechanisms, multiple taxation, and lack of public trust in government. The results further showed that tax evasion has a statistically significant negative effect on government revenue generation and public service delivery. Specifically, the study established that reduced tax compliance limits the government’s ability to finance critical infrastructure, social programs, and public welfare initiatives, thereby perpetuating economic underdevelopment and fiscal instability. The study concluded that addressing tax evasion requires strengthening tax administration systems, ensuring transparency and accountability in public finance management, simplifying tax procedures, and enhancing taxpayer education. It also recommended that government agencies adopt modern technological innovations such as digital tax filing and electronic monitoring systems to minimize leakages and promote voluntary compliance