An Appraisal of Administration and Enforcement of Taxation in Pre and Post Colonial Eras in Nigeria

Abstract

Abstract 
Modern States need revenue to meet the demands of modern governance. Modern governance 
entails fashioning and funding policies that address both domestic and foreign policy demands 
of any government. Tax is one sure source of revenue available to governments in modern 
times. Apart from making available funds for social and infrastructure services, taxation is also 
a tool for economic restructuring, regulation, income redistribution, re-channeling consumption 
pattern and fiscal planning. As part of the strategy for organising the State in order to 
checkmate political upheavals and economic instability, tax machinery yields itself to States 
as a tool that could be utilised to effectuate desired directives for driving economic growth and 
advancement. In the growing economies of the world, Nigeria inclusive, the issue of utilising tax 
system to achieve this growth and advancement has remained a mirage in spite of numerous tax 
reforms. Tax laws and the bulwark of tax administration need to accord with tax policies, 
culture and the desire of the government in this direction for optimum result. The researcher 
employed doctrinal methodology to ascertain, in addition to the main objective, the following: 
the nature of Nigerian tax system; the legal regime for tax administration and enforcement in 
Nigeria; the impediments to effective tax administration and enforcement in Nigeria; and ways 
of strengthening tax administration for adequate and optimum result. It was found, inter alia, 
that Nigeria is yet to maximally harness her revenue yield through taxation; Nigerian tax laws 
are complex and most of the tax payer are oblivious of their existence; the Nigerian operational 
tax model does not address most of the tax administration challenges bedeviling effective tax 
yield; there is uncertainty in the Nigerian tax system occasioned by yearly adjustment via 
appropriation laws, the relationship between tax payers and tax administrators in Nigeria is not 
cordial; corruption has similarly damaged the Nigerian tax system just like any other sector of 
the economy and that making amends by way of addressing all the challenges militating against 
effective tax administration and enforcement in Nigeria is imperative. The study accordingly 
recommended a pragmatic tax reform and effective tax policy reform that creates employment 
and a good business environment for small and medium enterprises to thrive, tax education/tax 
awareness, elimination of bottle necks in tax compliance, comprehensive legislative action, 
improved taxpayer–tax official relationship, effective war against corruption, etc. The study 
concludes that when all these reforms are carried out, the country will be on its way to 
sustainable economic development that can originate from an efficient and effective tax regime.