ASSESSMENT OF INFORMATION AND COMMUNICATION TECHNOLOGY IMPLEMENTATION AND EFFECTIVE COMPLIANCE MONITORING AND ENFORCEMENT OF TAXPAYERS IN NIGERIA

Abstract

This study examines the impact of Information and Communication Technology (ICT) on compliance monitoring and enforcement within Nigeria’s Federal Government Tax Collection System (FGTCS), addressing persistent challenges such as low tax compliance, administrative inefficiencies, and tax evasion. A survey research design was adopted, and primary data were collected using structured questionnaires administered to 225 staff of the Federal Inland Revenue Service (FIRS) in Abia and Anambra States. The respondents were selected through simple random sampling techniques. Multiple regression analysis was employed to test two hypotheses: (i) ICT has no significant effect on compliance monitoring, and (ii) ICT has no significant effect on compliance enforcement. Instrument validity and reliability were confirmed through pilot testing, with Cronbach’s Alpha coefficients exceeding the 0.70 threshold. The findings indicate that ICT significantly improves compliance monitoring and compliance enforcement, accounting for 22.8% and 21.3% of the variations, respectively. Specifically, e-tax filing and electronic remittance were found to have positive and significant effects on both monitoring and enforcement by enhancing accuracy, transparency, and traceability. Conversely, online tax registration exhibited a negative effect on compliance monitoring, while e-governance showed an adverse effect on compliance enforcement, suggesting shortcomings in system design and implementation. The study concludes that ICT is a critical driver of efficient tax administration in Nigeria; however, its effectiveness depends on alignment with strong regulatory frameworks and institutional capacity. The study recommends the adoption of user-centered digital reforms and adaptive tax policies to strengthen voluntary compliance and improve government revenue generation