Effect of Transparency on Revenue Generation Capacity of Federal Inland Revenue Service


    Government at all levels are established to provide inclusive goods and services to their inhabitants, such as defence, pipe born water, electricity, construction of roads, bridges, and drainages, establishing schools and health care centres, and this consequently requires revenue generation. However, revenue generation in Nigeria was hindered by some obstacles, among was corruption and this corruption is mostly occurred as a result of lack of transparency in the conduct of government business (revenue generation), this has negatively affected the actual amount that the federal government coffer should receive as income.  The objective of the study is to assess the effect of transparency on revenue generation capacity of Federal Inland Revenue Service (FIRS) in Nigeria. The study employed sequential mixed methods as a research design. The quantitative data is drawn from the use of questionnaire administered to the respondents and analyzed using figures, frequency counts and percentages, while the qualitative was drawn from the interview conducted. Secondary data were also generated and analysed, such as tax statistics/report from planning, research and statistics department of FIRS, National Tax Policy, FIRS Establishment Act among others. The study has a total population of 11, 956, sample size of 370 was drawn using Krecie and Morgan table size was. Regression analysis was used to test the hypotheses formulated using Statistical Package for Social Sciences (SPSS) version 23. Open innovation theory was used to underpin the research.  The study found that transparency has a significant effect on the revenue generation capacity of Federal Inland Revenue Service (FIRS). Therefore, this study recommended that FIRS should continue to maintain transparency in its operations and use it as a tool to build stronger relationships with taxpayers, stakeholders and general public, and this will reduce the risk of negative consequences such as legal or ethical violations. In addition, the FIRS should provide on it portal a column or space containing list of  taxpayers and their records for the revenue year and it should be updated regularly, and properly maintained for future use.      

    Key words Transparency, Revenue, Non-Tax Revenue, Revenue Generation Capacity  

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    author/Yahaya Saadu, Prof. Haruna Yerima & Dr. Idris A. Jamo 

    journal/FUJPAM Vol. 2, No. 1