RESEARCH JOURNAL OF BUSINESS AND ECONOMIC MANAGEMENT
Integrity Research Journals
ISSN: 2756-6676
Model: Open Access/Peer Reviewed
DOI: 10.31248/RJBEM
Start Year: 2017
Email: rjbem@integrityresjournals.org
Financial inclusion and tax revenue in Nigeria
https://doi.org/10.31248/RJBEM2022.084 | Article Number: C02DFB5D2 | Vol.5 (2) - December 2022
Received Date: 29 October 2023 | Accepted Date: 22 November 2022 | Published Date: 30 December 2022
Authors: Oreoluwa Omojola , Opeyemi Adebogun and Solomon Audu*
Keywords: Automated teller machine, direct tax, indirect tax, point of sale, web pay.
Tax to GDP ratio in Nigeria is low when compared to her contemporaries in Africa. While financial inclusion tries to widen the participants in the formal financial system. Hence, this study was designed to examine the effect of financial inclusion on tax revenue in Nigeria. The study employed the ex-post facto research design and secondary data was gathered over a timeframe spanning from 2010 to 2019. The data was analyzed using the multiple regression and the result revealed that Automated Teller Machine and Mobile pay have an inverse effect (-0.174, -2.166) on the level of direct tax revenue in Nigeria while Point of Sale (POS) and Web pay have a positive effect (3.454 and 1.564) on the level of direct tax revenue in Nigeria. On the other hand, the result showed that POS has an inverse effect on the level of indirect tax revenue in Nigeria. Based on the results, it was concluded from the study that financial inclusion has a significant effect on the level of tax revenue in Nigeria. It was recommended that revenue authorities in Nigeria should collaborate with the existing financial institutions in promoting financial inclusion in Nigeria.
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