ABSTRACT

Taxation is a dynamic subject which grow with the contant change in the economic environment in which it operates, hences the need to review the regulating instruments from time to time. Nigeria is governed by federal system hence its fiscal operation also adhere to the same principle, a fact which has serious implications on how the tax system is managed. The country’s tax system is lopsided, and dominated by oil revenue. It is also characterized by unnecessarily complex, distortionary and largely inequitable taxation laws that have limited application in the informal sectors that dominant the economy. The primarily objective of this paper is to prepare a case study on tax administration in Nigeria with the specific objectives of examining the main tax reforms in the country, highlighting tax revenue profile and composition, analyzing possible distributional impacts on the poor, discussing major problem that could prevent effective tax implementation in the country, and offering suggestion for reforms.