Search Articles

Home / Articles

Impact of Tax Automation on Subnational Domestic Revenue Mobilization and Development Financing in sub-Saharan Africa: Evidence from Nigeria’s South-East Region

. Nduka Vitalis Elda Okolo-Obasi, Cyprian Onyenekenwa Eneh & Chuke Emmanuel Nwude


This study assessed the effect of tax automation on total subnational domestic revenue mobilized in sub-saharan Africa and determined the impact of revenue change due to automation on development financing using evidence from south east region of Nigeria. Guided by benefit theory of taxation and technology acceptance model; we adopted quasi-experimental research design using secondary data covering from 2009 to 2021. The results from interrupted time series analysis using autoregressive integrated moving average indicate increase in total domestic revenue mobilized after automation. However, only about 38% of the increase was explained by automation. On the other hand, after deflating the data, the result shows that average value of revenues mobilised before automation have better capacity of financing development than average value of revenue mobilised after adoption of automation. This shows that the region needs to do more than adopting and using process automation to enlarge her tax effort and base. The study therefore, made recommendations, proffering practical solutions to automation and enlargement of subnational revenue collection in sub-saharan Africa.


Keywords:  Automation, Domestic revenue mobilization, Tax, Sub-saharan Africa

Download :