Nigeria Digital literacy Digital skills Digital platforms E-filing systems Revenue generation Tax administration Quantitative research

This study examines the effect of digitalization on tax compliance in Nigeria, focusing on digital literacy, digital skills, digital platforms, and e-filing systems. The study was prompted by Nigeria’s efforts to modernize its tax administration through digital technology, aiming to improve revenue generation and voluntary compliance. A quantitative research design was adopted, and data were collected from 375 respondents. The data were analyzed using descriptive statistics, correlation, and multiple regression techniques with the aid of E-Views 14.0.
The regression results revealed that digital literacy had a negative and significant effect on tax compliance in the short term, indicating that initial adaptation challenges may hinder compliance. Digital skills showed a positive but statistically insignificant effect, while digital platforms and e-filing recorded negative coefficients, with e-filing being marginally significant. The overall model was statistically significant, explaining about 22.4% of the variation in tax compliance. Diagnostic tests confirmed the model’s reliability, showing no evidence of autocorrelation or heteroskedasticity.
The findings imply that although digitalization enhances accessibility, transparency, and efficiency, behavioral and institutional barriers—such as low digital literacy, system inefficiencies, and limited trust in digital systems—continue to constrain its effectiveness. The study concludes that digitalization alone cannot ensure improved tax compliance unless supported by continuous taxpayer education, user-friendly systems, and strong institutional frameworks. It recommends capacity building, infrastructure improvements, and public sensitization to strengthen the positive impact of digital transformation on tax compliance in Nigeria.