Posting on behalf of Dr. Lasbrey Uzoma Nze in Chicago, USA.

--Nigeria's Tax System is indeed a challenging area that needs careful and sustained research. It is gratifying to note that more Nigerian intellectuals are attracted to this area. Our dear nation Nigeria, direly needs innovative changes in the tax system. The tax system is essentially yoked under the vestiges of the British tax system. Our heterogeneous culture, presidential political system and communal society all indicate that our tax system could be anything but British.

--Perhaps, with time, our lawmakers will get to design modern tax laws that are more suited to our life and heritage. The United States has used the tax system to provide sensible solutions to various societal problems. They do this over time as a bipartisan obligation for the general welfare of US citizens. It is rather a pity that the colonial tax codes are still on our books more than 50 years after independence.

--As the Imo State Commissioner of Finance, I stopped street and road tax drives in 1990 and introduced self-assessment as a better option. It was at first derided. Within only three months, the Internally Generated Revenue (IGR) of Imo State became more than doubled. For contractors, the annual tax amount helped to determine their classification. For many others, the tax receipt gave the taxpayer a preferential consideration in the allocation of limited government resources and benefits. Without any ado, people who had hitherto mastered the art of tax avoidance became willing and anxious to pay their income taxes. They then saw clearly the link between taxes and social services and other government programmes.

--My advice to you Tamuno, is to direct your research towards a specific area rather than the whole wide spectrum of the tax system. The area of the effectiveness of public financial intermediation is still undernourished. It yawns for good and innovative ideas. The emphasis of our dear nation, on revenue sharing rather than revenue generation, is unfortunate. Perhaps you should follow the ground norms being set by the present Minister of Finance to reverse this trend.

--You need to assess a number of institutions and MDAs in Nigeria that have direct or indirect responsibility and impact on revenue mobilization and allocation. Let me list at random, some that come to mind as follows;

1. Revenue Mobilization, Allocation and Fiscal Commission (RMAFC). There is also a published "Handbook on the RMAFC Activities".

2. Monthly Reports of the Conference of Commissioners of Finance and Accountants-General of States and FGN. Check this out with the Federal Ministry of Finance, Abuja.

3. Get details of the Incentive Program of 10% allocation for States that record substantial IGR increments. Seek for data on IGR of States from 1990-2014.

4. Federal Ministry of Finance; Data on Monthly Revenue Mobilization and Allocation to Federal, States and LGAs for the period of your study. Give emphasis to IGR.

5. Internal Revenue Services in Federal and State Governments with an eye on areas of duplication especially with regards to public and private corporations, sales tax, personal income tax and jurisdictional issues.

6. Customs and Excise administration in Nigeria - Need to streamline operations to actively reflect current imperatives of Government policies.
7. The effectiveness of Public Financial Intermediation in Federal and State governments.

I wish you would add to the existing knowledge in this area. Regards.

Dr. Lasbrey Uzoma Nze.
Chicago, USA.

How do taxpayers' behavioural responses shape (tax) compliance gaps in Nigeria?

2015-Jan-08 12:36

Additional research questions

Do Nigerian corporate taxpayers have a unique behavioral response or attitude?

How has voluntary compliance affected tax compliance gaps?

is there an established pattern of variance between estimated tax revenue and actual tax revenue?


From this research, one should be able to unravel the peculiar attitude(s) and behavioural responses of the corporate taxpayer in Nigeria as the dimension of individual taxpayers has been appreciably explored. This go a long way in equipping tax authorities in shaping their policies as well as enlighten the government on the reasons responsible for variances in budgeted and actual tax revenues.

Support needed

I need relevant data to carry out my analysis, this should be in form of BUDGETED AND ACTUAL COMPANIES INCOME TAX (CIT) REVENUE from 1990 to 2014.

Progress and updates

08/Jan/2015 12:36 - So far, the introduction, literature review and methodology aspects of the work have been completed. Also, efforts have been made to get the required data by visiting relevant websites like www.firs.gov.ng, budgetoffice.gov.ng. national bureau of statistics, etc. I have also taken down the data that relates to tax revenue from 2000 to 2011 on this website, but the figure are imprecise and full of approximations.