Fiscal Regime Performance: Role of Tax Administration in Nigeria

Abstract

This study is a descriptive analysis that examined whether various tax systems and administration have stabilized the revenue pattern in the process of achieving stated tax policy objectives. It examines the trend and composition of tax policy in Nigeria. Using secondary data, the study discovered that Nigerian tax revenue sources are highly unstable and largely depends on oil sector. The revenue structure largely depends on the exportation of primary commodities which has only changed from agricultural commodities to crude oil which has made the economy unsustainable. On the basis of the above, the study recommended that revenue structure should be significantly based on diversified domestic production with considerable and sustainable value addition for global competitiveness and accelerated growth and also, the tax system should be aimed at having a marginally significant but cumulative effect on permanent growth rates. In other words, a broad base tax system with effective enforcement and management should be established to garner more revenue and engender faster economic growth.