Electronic Payment System and Tax Payment in Nigeria
Keywords:
Electronic Payment, Tax Payment, Technology Acceptance Model, Multiple Regression, Accounting Implications
Abstract
This study investigates the factors affecting the adoption of electronic payment systems for tax payment in Rivers State, Nigeria. Given the increasing importance of digitization in financial transactions, understanding these factors can provide valuable insights for policymakers, taxpayers, and accounting professionals alike. The aim is to evaluate the role of four primary variables: ease of use, security concerns, government support, and taxpayer behavior in the successful implementation of electronic tax payment systems. The study employed a survey design and was conducted among 400 adults working in Rivers State using a snowballing sampling technique. Questionnaires were administered to gain insights into the perspectives of those who pay personal income taxes. Multiple regression analysis indicated that all four variables have a significant positive relationship with the adoption of electronic payment systems for tax. The adjusted R² value of 0.70 suggests that the model explains 70% of the variance in system adoption. From an accounting standpoint, the results imply that electronic tax payment systems can bring about substantial improvements in financial record-keeping, compliance, and cost efficiency. Particularly, the study findings corroborate several existing theories in financial behavior and technology acceptance. Based on these findings, the study recommends further investment in enhancing the system’s user interface and security features. Moreover, educational campaigns by the government and training for accounting professionals are essential for maximizing the system's utility.
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References
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Adebayo, P., Umar, T., & Musa, A. (2020). Challenges in the Implementation of E-Payment Systems for Tax Collection in Nigeria. Journal of African Public Policy, 11(2), 60-76.
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Ahmed, E., & Braithwaite, V. (2004). When Tax Collectors Become Collectors for Child Support and Student Loans: Jeopardizing the Revenue Base? Kanbur Research Paper, 14(2), 88-102.
Ajakaiye, O. (2001). Economic Development in Nigeria: A Review of Experience. Journal of Economic Studies, 28(1), 120-145.
Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179-211.
Arens, A. A., Elder, R. J., & Beasley, M. S. (2020). Auditing and Assurance Services. Pearson.
Brown, T., Williams, S., & Johnson, F. (2018). Accessibility and Inclusion in E-Tax Systems. Journal of Public Accessibility, 7(2), 122-138.
Bwalya, K. J., & Mutula, S. (2012). E-Government Implementation in Africa: A Theoretical Extension of the Technology-Organization-Environment (TOE) Framework with Institutional Theory. Journal of Public Administration and Policy Research, 4(3), 82-92.
Chau, P. Y., & Poon, S. (2013). Factors Affecting the Implementation of Electronic Tax Filing Systems: An Empirical Study. Information Systems Journal, 23(5), 399-417.
Chukwurah, D. C., & Ude, A. O. (2016). Evaluation of the Implementation of E-Tax Payment in Nigeria. International Journal of Economics and Finance, 6(3), 178-185.
Clark, M., & Wang, L. (2021). Regulatory Implications of E-Tax Systems: A Comparative Study. Journal of Political Economy and Policy, 9(1), 40-55.
Creswell, J. W. (2014). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches. SAGE Publications.
Creswell, J.W., & Creswell, J.D. (2018). Research design: Qualitative, quantitative, and mixed methods approaches. Sage publications.
Dada, J. (2017). Infrastructure in Africa: Challenges and Opportunities. Journal of African Development, 19(1), 120-144.
Davidson, R. (2010). E-Government and Public Administration Reforms: Case Studies from Developed Countries. Government Information Quarterly, 27(4), 356-365.
Davies, M., & Aston, J. (2019). Contemporary Issues in Accounting. Wiley.
Davis, F. D. (1986). A Technology Acceptance Model for Empirically Testing New End-User Information Systems: Theory and Results. Doctoral Dissertation, MIT Sloan School of Management.
DiMaggio, P. J., & Powell, W. W. (1983). The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields. American Sociological Review, 48(2), 147-160.
Eboh, M. (2011). Taxation and Fiscal Policy in Nigeria: A Strategic Analysis. Journal of Finance and Economics, 7(3), 65-77.
Elson, R., & Farouq, M. (2022). Tax Incentives and Adoption of Electronic Payment Systems. Journal of Tax Policy and Incentives, 2(2), 22-35.
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Fernandez, L., Clark, H., & Dean, A. (2018). Taxpayer Morale and Electronic Systems: A Behavioral Study. Journal of Public Behavior, 10(3), 45-60.
Goodman, L. A. (1961). Snowball sampling. Annals of Mathematical Statistics, 32(1), 148-170.
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IMF (2020). Nigeria's Economic Outlook. International Monetary Fund Annual Report.
Jacobs, L., & Nwokocha, U. (2021). E-Tax Systems and Small and Medium Enterprises: An Emerging Market Perspective. Journal of Business in Developing Nations, 12(1), 24-37.
Johnson, A., Edward, M., & Stevens, L. (2020). Cybersecurity Measures in E-Tax Payment Systems. Journal of Cybersecurity and Trust, 4(2), 25-42.
Johnson, O. E., & Adeoti, J. O. (2016). Infrastructure Development and Economic Growth in Emerging Economies. Journal of Infrastructure Development, 8(2), 153-167.
Jones, P. (2019). Digital Literacy and Its Importance. International Journal of Computer Applications, 52(1), 88-95.
Kingsley, J., Robert, M., & Ngozi, F. (2019). Gender and Adoption of Electronic Tax Systems: An Empirical Study. Gender and Development Journal, 17(2), 301-316.
Kingsley, J., Robert, M., & Ngozi, F. (2019). Gender and Adoption of Electronic Tax Systems: An Empirical Study. Gender and Development Journal, 17(2), 301-316.
Kumar, N., & Mukherjee, A. (2013). The Role of Technology Acceptance Model in Explaining Effect of E-Government Services. Journal of Services Research, 13(2), 33-50.
Mathews, M., & Soltani, B. (2018). An Exploration into Revenue Mobilization: The Role of Institutional Frameworks. Journal of Public Financial Management, 21(3), 45-60.
Mawanda, F., & Ssewanyana, J. (2017). E-tax Systems in Africa: A Study. African Journal of Business Management, 11(9), 192-201.
Mbogo, M., & Kinyua, A. (2017). A Comparative Analysis of E-Tax Systems in East and West Africa. African Journal of Information Systems, 9(2), 45-63.
Mehta, D., & Joshi, A. (2016). Electronic Tax Administration in India: An Evaluation. Indian Journal of Public Administration, 62(3), 399-412.
Nunnally, J. C. (1978). Psychometric theory (2nd ed.). New York: McGraw-Hill.
Nwokoye, G. A., & Efobi, U. R. (2017). Revenue Generation in Lagos State: An Assessment of E-Tax Pay. Journal of Financial Management, 25(1), 107-124.
Ogbonna, G. N., & Appah, E. (2012). Impact of Tax Reforms and Economic Growth of Nigeria: A Time Series Analysis. Current Research Journal of Social Sciences, 4(1), 62-68.
Ogunleye, J. K., & Izedonmi, F. (2015). Electronic Taxation in Nigeria: Problems and Prospects. Journal of African Studies, 44(2), 218-237.
Okafor, R., & Ocheni, S. (2019). Cultural Attitudes and Electronic Tax Payment in Nigeria. African Culture Journal, 6(4), 75-89.
Oke, M. (2021). Cybersecurity in Africa: Challenges and Solutions. African Security Review, 30(1), 31-49.
Okon, E., & Ijeoma, M. (2020). Adoption of E-Payment Systems in Rural vs. Urban Areas: A Nigerian Case Study. Journal of African Rural Development, 8(3), 76-91.
Ola, C. S. (1985). Nigerian Tax Law and Administration: A Case Study. Ikeja: Graham & Trotman.
Oladele, R., & Adebisi, J. F. (2015). Challenges of Tax Collection in Nigeria: A Case Study of Lagos State. Journal of Economics and Management, 8(1), 135-147.
Olusola, W., & Akintoye, I. R. (2019). Acceptability of Electronic Tax Payment Systems in Nigeria. Nigerian Journal of Fiscal Studies, 4(1), 33-50.
Omolehinwa, E., & Naiyeju, J. K. (2016). The Imperatives of Public Finance Management in Nigeria. Financial Accountability & Management, 32(3), 305-318.
Oni, B., & Joshua, S. (2007). Reforms in the Nigerian Tax System: Implications for Revenue Generation. Journal of Public Policy and Administration, 21(2), 17-30.
Oyedele, T. (2018). The Taxation Dilemma in Nigeria: Where Are We Headed? Journal of Financial Management, 19(2), 24-39.
Schmidt, R. (2016). E-Taxation and Compliance in Europe: An Empirical Study. European Journal of Tax Law, 8(1), 42-56.
Schroeder, R. G., Clark, M. W., & Cathey, J. M. (2021). Financial Accounting Theory and Analysis: Text and Cases. Wiley.
Smith, J. (2018). Tax collection in Developing Countries: A Review. Journal of Finance, 32(1), 12-34.
Smith, M. (2020). Importance of Digital Literacy in the Modern World. Journal of Education and Learning, 9(2), 112-119.
Thomas, S., & Garg, P. (2021). E-Tax Systems in Developing and Developed Countries: A Comparative Analysis. Journal of Global Fiscal Policy, 7(3), 130-148.
Turner, S., & Williams, K. (2019). Fraud Detection in E-Tax Systems: An Empirical Study. Journal of Public Finance and Security, 11(3), 60-76.
Walker, J., & Smith, A. (2017). The Impact of User-Centric Design on E-Tax Systems. Journal of Information Design, 3(1), 55-70.
Wilson, T., Brown, A., & Bell, M. (2010). Adoption of Electronic Tax Systems: A Case Study of the United States. Journal of Financial Technology, 5(3), 71-85.
World Bank (2019). Overview of Nigeria's Economy. Retrieved from World Bank's official website.
Zubairu, I., & Haruna, P. (2020). Religion and Willingness to Adopt E-Tax Payment Systems. Journal of Religious Studies and Public Policy, 5(3), 62-77.
Adebayo, P., Umar, T., & Musa, A. (2020). Challenges in the Implementation of E-Payment Systems for Tax Collection in Nigeria. Journal of African Public Policy, 11(2), 60-76.
Adebisi, J. F., & Gbegi, D. O. (2013). Effect of Tax Avoidance and Tax Evasion on Personal Income Tax Administration in Nigeria. American Journal of Humanities and Social Sciences, 1(3), 125-134.
Adeniji, O. (2018). Electronic Payment Systems and Tax Evasion: The Nigerian Experience. Journal of Public Finance, 15(2), 107-121.
Adesina, A. A., & Ayo, C. K. (2010). An Empirical Investigation of the Level of Users’ Acceptance of E-banking in Nigeria. Journal of Internet Banking and Commerce, 15(1), 1-13.
Aguolu, O. (1998). Taxation and Tax Management in Nigeria. Enugu: Meridian Associates.
Ahmed, E., & Braithwaite, V. (2004). When Tax Collectors Become Collectors for Child Support and Student Loans: Jeopardizing the Revenue Base? Kanbur Research Paper, 14(2), 88-102.
Ajakaiye, O. (2001). Economic Development in Nigeria: A Review of Experience. Journal of Economic Studies, 28(1), 120-145.
Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179-211.
Arens, A. A., Elder, R. J., & Beasley, M. S. (2020). Auditing and Assurance Services. Pearson.
Brown, T., Williams, S., & Johnson, F. (2018). Accessibility and Inclusion in E-Tax Systems. Journal of Public Accessibility, 7(2), 122-138.
Bwalya, K. J., & Mutula, S. (2012). E-Government Implementation in Africa: A Theoretical Extension of the Technology-Organization-Environment (TOE) Framework with Institutional Theory. Journal of Public Administration and Policy Research, 4(3), 82-92.
Chau, P. Y., & Poon, S. (2013). Factors Affecting the Implementation of Electronic Tax Filing Systems: An Empirical Study. Information Systems Journal, 23(5), 399-417.
Chukwurah, D. C., & Ude, A. O. (2016). Evaluation of the Implementation of E-Tax Payment in Nigeria. International Journal of Economics and Finance, 6(3), 178-185.
Clark, M., & Wang, L. (2021). Regulatory Implications of E-Tax Systems: A Comparative Study. Journal of Political Economy and Policy, 9(1), 40-55.
Creswell, J. W. (2014). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches. SAGE Publications.
Creswell, J.W., & Creswell, J.D. (2018). Research design: Qualitative, quantitative, and mixed methods approaches. Sage publications.
Dada, J. (2017). Infrastructure in Africa: Challenges and Opportunities. Journal of African Development, 19(1), 120-144.
Davidson, R. (2010). E-Government and Public Administration Reforms: Case Studies from Developed Countries. Government Information Quarterly, 27(4), 356-365.
Davies, M., & Aston, J. (2019). Contemporary Issues in Accounting. Wiley.
Davis, F. D. (1986). A Technology Acceptance Model for Empirically Testing New End-User Information Systems: Theory and Results. Doctoral Dissertation, MIT Sloan School of Management.
DiMaggio, P. J., & Powell, W. W. (1983). The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields. American Sociological Review, 48(2), 147-160.
Eboh, M. (2011). Taxation and Fiscal Policy in Nigeria: A Strategic Analysis. Journal of Finance and Economics, 7(3), 65-77.
Elson, R., & Farouq, M. (2022). Tax Incentives and Adoption of Electronic Payment Systems. Journal of Tax Policy and Incentives, 2(2), 22-35.
Epstein, B. J., & Jermakowicz, E. K. (2018). Wiley IFRS 2018: Interpretation and Application of IFRS Standards. Wiley.
Fernandez, L., Clark, H., & Dean, A. (2018). Taxpayer Morale and Electronic Systems: A Behavioral Study. Journal of Public Behavior, 10(3), 45-60.
Goodman, L. A. (1961). Snowball sampling. Annals of Mathematical Statistics, 32(1), 148-170.
Gupta, S., Sharma, V., & Paul, R. (2022). Blockchain Technology and Tax Collection: A Future Perspective. Journal of Emerging Technologies in Accounting, 9(1), 11-25.
Harrison, R., & Waema, T. (2015). Financial Institutions and E-Payment Systems: A Study on Adoption and Compliance. Journal of Banking and Finance, 6(4), 88-101.
IMF (2020). Nigeria's Economic Outlook. International Monetary Fund Annual Report.
Jacobs, L., & Nwokocha, U. (2021). E-Tax Systems and Small and Medium Enterprises: An Emerging Market Perspective. Journal of Business in Developing Nations, 12(1), 24-37.
Johnson, A., Edward, M., & Stevens, L. (2020). Cybersecurity Measures in E-Tax Payment Systems. Journal of Cybersecurity and Trust, 4(2), 25-42.
Johnson, O. E., & Adeoti, J. O. (2016). Infrastructure Development and Economic Growth in Emerging Economies. Journal of Infrastructure Development, 8(2), 153-167.
Jones, P. (2019). Digital Literacy and Its Importance. International Journal of Computer Applications, 52(1), 88-95.
Kingsley, J., Robert, M., & Ngozi, F. (2019). Gender and Adoption of Electronic Tax Systems: An Empirical Study. Gender and Development Journal, 17(2), 301-316.
Kingsley, J., Robert, M., & Ngozi, F. (2019). Gender and Adoption of Electronic Tax Systems: An Empirical Study. Gender and Development Journal, 17(2), 301-316.
Kumar, N., & Mukherjee, A. (2013). The Role of Technology Acceptance Model in Explaining Effect of E-Government Services. Journal of Services Research, 13(2), 33-50.
Mathews, M., & Soltani, B. (2018). An Exploration into Revenue Mobilization: The Role of Institutional Frameworks. Journal of Public Financial Management, 21(3), 45-60.
Mawanda, F., & Ssewanyana, J. (2017). E-tax Systems in Africa: A Study. African Journal of Business Management, 11(9), 192-201.
Mbogo, M., & Kinyua, A. (2017). A Comparative Analysis of E-Tax Systems in East and West Africa. African Journal of Information Systems, 9(2), 45-63.
Mehta, D., & Joshi, A. (2016). Electronic Tax Administration in India: An Evaluation. Indian Journal of Public Administration, 62(3), 399-412.
Nunnally, J. C. (1978). Psychometric theory (2nd ed.). New York: McGraw-Hill.
Nwokoye, G. A., & Efobi, U. R. (2017). Revenue Generation in Lagos State: An Assessment of E-Tax Pay. Journal of Financial Management, 25(1), 107-124.
Ogbonna, G. N., & Appah, E. (2012). Impact of Tax Reforms and Economic Growth of Nigeria: A Time Series Analysis. Current Research Journal of Social Sciences, 4(1), 62-68.
Ogunleye, J. K., & Izedonmi, F. (2015). Electronic Taxation in Nigeria: Problems and Prospects. Journal of African Studies, 44(2), 218-237.
Okafor, R., & Ocheni, S. (2019). Cultural Attitudes and Electronic Tax Payment in Nigeria. African Culture Journal, 6(4), 75-89.
Oke, M. (2021). Cybersecurity in Africa: Challenges and Solutions. African Security Review, 30(1), 31-49.
Okon, E., & Ijeoma, M. (2020). Adoption of E-Payment Systems in Rural vs. Urban Areas: A Nigerian Case Study. Journal of African Rural Development, 8(3), 76-91.
Ola, C. S. (1985). Nigerian Tax Law and Administration: A Case Study. Ikeja: Graham & Trotman.
Oladele, R., & Adebisi, J. F. (2015). Challenges of Tax Collection in Nigeria: A Case Study of Lagos State. Journal of Economics and Management, 8(1), 135-147.
Olusola, W., & Akintoye, I. R. (2019). Acceptability of Electronic Tax Payment Systems in Nigeria. Nigerian Journal of Fiscal Studies, 4(1), 33-50.
Omolehinwa, E., & Naiyeju, J. K. (2016). The Imperatives of Public Finance Management in Nigeria. Financial Accountability & Management, 32(3), 305-318.
Oni, B., & Joshua, S. (2007). Reforms in the Nigerian Tax System: Implications for Revenue Generation. Journal of Public Policy and Administration, 21(2), 17-30.
Oyedele, T. (2018). The Taxation Dilemma in Nigeria: Where Are We Headed? Journal of Financial Management, 19(2), 24-39.
Schmidt, R. (2016). E-Taxation and Compliance in Europe: An Empirical Study. European Journal of Tax Law, 8(1), 42-56.
Schroeder, R. G., Clark, M. W., & Cathey, J. M. (2021). Financial Accounting Theory and Analysis: Text and Cases. Wiley.
Smith, J. (2018). Tax collection in Developing Countries: A Review. Journal of Finance, 32(1), 12-34.
Smith, M. (2020). Importance of Digital Literacy in the Modern World. Journal of Education and Learning, 9(2), 112-119.
Thomas, S., & Garg, P. (2021). E-Tax Systems in Developing and Developed Countries: A Comparative Analysis. Journal of Global Fiscal Policy, 7(3), 130-148.
Turner, S., & Williams, K. (2019). Fraud Detection in E-Tax Systems: An Empirical Study. Journal of Public Finance and Security, 11(3), 60-76.
Walker, J., & Smith, A. (2017). The Impact of User-Centric Design on E-Tax Systems. Journal of Information Design, 3(1), 55-70.
Wilson, T., Brown, A., & Bell, M. (2010). Adoption of Electronic Tax Systems: A Case Study of the United States. Journal of Financial Technology, 5(3), 71-85.
World Bank (2019). Overview of Nigeria's Economy. Retrieved from World Bank's official website.
Zubairu, I., & Haruna, P. (2020). Religion and Willingness to Adopt E-Tax Payment Systems. Journal of Religious Studies and Public Policy, 5(3), 62-77.
Published
2023-09-28
How to Cite
SIMON, A., IGNATIUS, I., & JOHNSONN, N. (2023). Electronic Payment System and Tax Payment in Nigeria. GPH-International Journal of Business Management, 6(09), 76-88. https://doi.org/10.5281/zenodo.8385716
Section
Articles
Copyright (c) 2023 Ali, Andrew Simon, Ironkwe, Uwaoma Ignatius & Nwaiwu, Johnsonn
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