OPTIMIZING FISCAL AUTONOMY IN DEVELOPING STATES: THE INTERPLAY OF TAX ADMINISTRATION STRATEGIES AND REVENUE PERFORMANCE.
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Date
2026
Journal Title
Journal ISSN
Volume Title
Publisher
DEPARTMENT OF ECONOMICS NIGERIA POLICE ACADEMY, WUDIL-KANO
Abstract
Optimizing internally generated revenue (IGR) is critical for the fiscal autonomy of sub-national governments in
Nigeria. However, state tax authorities consistently face revenue underperformance due to administrative
inefficiencies. This study evaluates the impact of tax administration strategies on revenue performance within the
Kwara State Internal Revenue Service (KWIRS), Nigeria. It examines four dimensions: tax registration
efficiency, taxpayer awareness, strategic tax incentives, and electronic tax filing systems. The study adopts a
descriptive and causal research design. Primary data is gathered via structured questionnaires administered to
a purposive sample of KWIRS officials and taxpayers across its area offices. Analysis is anchored on
Institutional Capacity Theory and the Technology Acceptance Model (TAM), utilizing descriptive statistics and
multiple regression analysis to test the variables. The framework addresses critical bottlenecks, including
database under-registration, low voluntary compliance due to information asymmetry, incentive-driven revenue
leakages, and digital infrastructure gaps. The study underscores that maximizing sub-national tax yields
requires transitioning from manual tracking to an integrated framework that balances structural enforcement
with administrative service delivery. Optimizing registration, awareness, incentives, and digital infrastructure is
vital to expanding the tax net, minimizing collection costs, and securing long-term fiscal independence for
Kwara State.