THE CHALLENGES AND PROSPECTS OF TAX ADMINISTRATION IN NIGERIA
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Abstract
This study examines the challenges of tax administration in Benin City, Edo State, Nigeria, with a focus on the Federal Inland Revenue Service (FIRS). The research explores issues such as inefficiency, corruption, inadequate taxpayer education, and complex tax laws, which hinder effective revenue generation. A survey research design was employed, with data collected through structured questionnaires administered to FIRS officials and taxpayers. The data were analyzed using statistical tools, including the chi-square test. The findings indicate that corruption and administrative inefficiencies significantly affect tax compliance and revenue collection. Additionally, inadequate taxpayer education contributes to non-compliance. The study recommends improved transparency in tax administration, digitalization of tax processes, and enhanced taxpayer education to boost compliance. Implementing these measures will strengthen Nigeria's tax system and promote sustainable economic growth.
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