TAX MANAGEMENT PRACTICES AND PERFORMANCE OF STATE INTERNAL REVENUE SERVICES IN SOUTHWEST, NIGERIA: MODERATING ROLE OF INFORMATION TECHNOLOGY ADOPTION

Abstract

Despite reforms in Nigeria's tax system, the performance of State Internal Revenue Services (SIRS) remains suboptimal, largely due to ineffective tax management practices and limited technological integration, resulting in low revenue generation. Given these issues, this study investigates the moderating role of information technology (IT) adoption on the relationship between tax management practices and the performance of SIRS in South-West Nigeria. The study aimed to examine both the direct and interaction effects of tax management and IT on institutional performance. A cross-sectional survey design was employed, targeting a population of 8,142 staff across Lagos, Ogun, and Oyo States. A sample size of 381 was determined using Taro Yamane statistical formula and Morgan’s table and selected through proportionate stratified random sampling. Data were collected using structured questionnaires and analyzed using Covariance-Based Structural Equation Modeling (CB-SEM) and Partial Least Squares Structural Equation Modeling (PLS-SEM). The results reveal that tax management practices have a statistically significant positive effect on performance (β = 0.471, p < 0.001), as does IT adoption (β = 0.392, p < 0.001). However, the moderating effect of IT on the relationship between tax management and performance was statistically insignificant (β = 0.041, p = 0.287). The study concludes that while both tax practices and IT adoption independently improve SIRS performance, their interaction does not produce an additional significant effect under current conditions. The study recommends that SIRSs should continue flourishing investments in staff training, IT infrastructure, and administrative alignment to strengthen institutional capacity and improve their tax administration efficiencies.