The tax laws in Nigeria have not changed in many years

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ABSTRACT OF THE STUDY

BUILDING A TAX CULTURE IN NIGERIA, The underlying premise of this study is that if the appropriate policies, laws and administrative procedures are put in place, the residents of any state or country would pay taxes. This is evident in the case of Lagos State, one of the thirty-six states of Nigeria, which within 6 years has been able to increase its internally-generated revenue (IGR) by over 400%. The tax laws in Nigeria have not changed in many years and neither has the economic structure of the states changed significantly enough to make such a huge difference in IGR.

Lagos state has hence put in place appropriate structures, policies and procedures aimed at ensuring that a significant number of its residents and citizens pay taxes, not just forcefully but willingly. Therefore, the main objective of this study is to look for ways to build and promote a tax-paying culture among the residents of Nigeria using the success story of Lagos State as the basis of extrapolation, while highlighting the major behavioural determinants and attributes of a compliant tax payer.

The study will aim to evaluate critically those strategies that have contributed to the success of Lagos State, where an all-encompassing tax culture has been built and by doing so, led to a significant increase in the revenue available to the state to improve infrastructures and other amenities. We will also determine the practicality of such measures in other states of Nigeria in a bid to promote a nation-wide tax culture that will not only increase compliance or fill the revenue gap, but will also enhance the faith in the Nigerian tax system while releasing requisite funds for economic prosperity and national growth.

This study should be able to ascertain the status of the Boards of Internal Revenue Service as the revenue collection centres of their respective State Governments by putting in place structures and policies; and also implementing strategies that will ensure collection of the proper amount of tax revenue at the least possible cost. The study will also show that Nigerians are not averse to paying taxes if an appropriate culture is built and complemented with policies and administrative procedures…