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VOL. 7, ISSUE 4 (2025)
Impact of tax evasion and tax avoidance on revenue generation in Nigeria
Authors
Hamidu Shehu
Abstract
This research examined
the impact of tax evasion and tax avoidance on the Nigerian revenue generation.
The study adopted ex-post facto research design and data were obtained from
Central Bank of Nigeria annual Statistical report and Federal Inland Revenue
Service revenue statistical report for the period 2005 - 2024. Ordinary Least
Square (OLS) Regression model was used to analyse data and test the hypotheses.
Result of the data analyses revealed that there is no both relationship between
tax evasion and tax avoidance and the Nigerian revenue generation. Both tax
evasion and tax avoidance indicate an insignificant relationship with Nigerian
revenue generation. The study concluded that tax evasion and tax avoidance do
not have any significant impact on Nigeria’s revenue generation. In fact, tax
evasion and tax avoidance reduce the quantum of funds available to the country
to meet with its economic and financial obligations to the citizens. Based on
the findings, it is thus recommended that a lasting solution to the menace of
tax evasion and tax avoidance is necessary. Also recommended that, 'carrot and
stick' approach should be adopted to solve the problem. Finally, proper
utilization of tax revenue will also improve /boost tax compliance level in the
Country.
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Pages:16-24
How to cite this article:
Hamidu Shehu "Impact of tax evasion and tax avoidance on revenue generation in Nigeria". International Journal of Finance and Commerce, Vol 7, Issue 4, 2025, Pages 16-24
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