Optimizing Revenue Potentials in States’ Internal Revenue Services: Challenges, Opportunities, and Strategies in Light of the Nigerian 2025 Tax Reform Acts

Abstract

This study examines the revenue mobilization and administration in Nigeria, with a focus on the challenges and opportunities facing internal revenue services across the country. The study employed a survey research design, with a questionnaire administered to 132 staff selected from the state internal revenue services of the 36 states of Nigeria and the Federal capital Territory (FCT), Abuja. Data was analyzed by using both descriptive and inferential statistics. The results show that the revenue generated by various revenue boards have not been sufficient to finance the various states’ budgets. The study further reveals that despite increasing revenue generations across various states and the FCT, the services face significant challenges and that corruption, tax evasion, and bureaucratic bottlenecks are major challenges facing the various revenue mobilization and administration boards. The study also identifies opportunities for improvement, including the use of electronic tax collection methods, public awareness and education campaigns, and streamlining of tax laws and regulations. The study recommends training and capacity building for tax personnel, adoption of electronic tax collection methods, public awareness and education campaigns, reduction of political interference, and streamlining of tax laws and regulations. This study contributes to the existing body of knowledge on revenue mobilization and administration in Nigeria, and provides valuable insights for policymakers and stakeholders to enhance revenue generation nationwide.