The Impact of Tax Evasion on Government Revenue in Nigeria: A Case Study of Lagos State Government
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style:
- Recommended for :
- NGN 5000
Background of the Study
Tax evasion, the illegal practice of not paying taxes owed, poses a significant threat to the economic stability and development of many nations, including Nigeria. Lagos State, often regarded as the economic hub of Nigeria, relies heavily on internally generated revenue (IGR) to fund its public services and infrastructure projects. Despite its robust tax base, the state faces challenges in maximizing revenue due to widespread tax evasion among individuals and businesses (Adewale & Okeke, 2024).
Tax evasion undermines government efforts to provide essential services, resulting in budget deficits and delayed development projects. Studies have shown that in Lagos State, factors such as weak enforcement, corruption, and lack of trust in government institutions contribute to high rates of tax evasion (Oluwatoyin & Adegbite, 2023). Addressing this issue is critical for enhancing revenue mobilization and achieving sustainable economic growth.
This study explores the extent to which tax evasion affects government revenue in Lagos State, focusing on its implications for public service delivery and infrastructure development.
Statement of the Problem
Lagos State generates a significant portion of its revenue through taxes, yet the potential remains largely untapped due to the pervasive issue of tax evasion. The state’s inability to enforce tax compliance effectively results in substantial revenue losses, estimated to run into billions annually (Uche & Emeka, 2023). This shortfall limits the government’s capacity to fund critical projects, exacerbating socio-economic challenges such as poor infrastructure and inadequate healthcare services.
This study addresses the pressing issue of tax evasion in Lagos State, seeking to quantify its impact on government revenue and identify strategies for improving tax compliance.
Objectives of the Study
- To assess the impact of tax evasion on government revenue in Lagos State.
- To identify the factors contributing to tax evasion in Lagos State.
- To propose measures for reducing tax evasion and enhancing revenue collection.
Research Questions
- What is the impact of tax evasion on government revenue in Lagos State?
- What factors contribute to tax evasion in Lagos State?
- What measures can reduce tax evasion and improve revenue collection in Lagos State?
Research Hypotheses
- Tax evasion significantly reduces government revenue in Lagos State.
- Socio-economic factors such as corruption and weak enforcement contribute to tax evasion in Lagos State.
- Effective measures to reduce tax evasion significantly enhance government revenue in Lagos State.
Scope and Limitations of the Study
The study focuses on the impact of tax evasion on Lagos State Government revenue from 2023 to 2025. Limitations include reliance on secondary data and potential challenges in accessing accurate financial records.
Definitions of Terms
- Tax Evasion: The illegal act of avoiding tax payment by misreporting income or transactions.
- Government Revenue: Income generated by the government through taxes, levies, and other sources.
- Lagos State Government: The governing body responsible for the administration of Lagos State, Nigeria.
Related Project Materials
An evaluation of mobile banking platform reliability on customer satisfaction in finance: a case study of Ecobank Nigeria
Background of the Study
Mobile banking platforms have become a cornerstone of financial service delivery, offering customer...
A Review of the Impact of Blockchain on Data Transparency in Nigerian Businesses: A Study of Fintech Startups in Jigawa State
Background of the Study
Blockchain technology, known for its decentralization, transparency, and immutability, has the p...
THE EFFECT OF E-NAIRA PLATFORM ON NIGERIA COMMERCIAL BANKS
Background Of The Study
Nigeria's financial landscape has never been static. New services and produ...
An assessment of the geopolitical challenges facing wildlife conservation in Wukari Local Government Area, Taraba State
Chapter One: Introduction
THE EFFECT OF ARTIFICIAL INTELLIGENCE MODELS IN PREDICTING RANSOMWARE ATTACKS: A CASE STUDY OF FEDERAL MINISTRIES, ABUJA, FCT
CHAPTER ONE
1.1 Background of the Study
Ransomware attacks are among the most devastating for...
Exploring the Impact of Government Policy on National Income Distribution in Nigeria
Background of the Study
Government policy plays a crucial role in determining how income is distributed a...
An Assessment of Oncology Nurses’ Knowledge of Chemotherapy Safety Protocols at University of Uyo Teaching Hospital, Akwa Ibom State
Background of the Study
Chemotherapy is a cornerstone of cancer treatment, offering the potential to treat and manage various forms of ca...
A STYLISTIC ANALYSIS OF CHIMAMANDA ADICHIE’S “PURPLE HIBISCUS” AND CHINUA ACHEBE’S “ANTHILLS OF THE SAVANNAH
Abstract
Language and style never moves beyond a concentration on the supremacy of words. Literary piece (such as no...
The Role of Auditing in Fraud Prevention in Kebbe Local Government Area
Background of the Study
Fraud in local government operations can significantly undermine public trust, waste resources,...
THE INFLUENCE OF STRESS ON WORK BEHAVIOR AMONG NURSES
Abstract
Occupational stress can no longer be considered an occasional, personal problem to be remedied with palliatives...
