Determinants of Sustainable Value-Added Tax Revenue Generation in Nigeria

Authors

Abstract

Objectives: This study examined the determinants of sustainable Value-Added Tax (VAT) revenue in Nigeria, specifically, it focused on determining the effects of VAT policy gaps, VAT system simplicity, VATcompliance, and VAT fairness perceptions on sustainable VAT revenue performance in Nigeria. Prior Work: While extant literature acknowledges VAT’s fiscal importance and challenges like complexity and tax gaps, integrated empirical research on how these factors influence VAT revenue sustainability in Nigeria remains lacking. Approach: Using a cross-sectional survey, primary data were collected from 384 VATable entities, tax officials, and experts. Partial Least Square - Structural Equation Modelling (PLS-SEM) was employed for analysis. Results: All four constructs—policy gap, simplicity, compliance, and fairness perception show a significant positive effect on sustainable VAT revenue. Implications: Tax authorities must adopt integrated reforms that close policy gaps via efficient data systems, simplify compliance, and foster fairness perceptions to enhance voluntary compliance and long-term VAT revenue sustainability. Value: This study uniquely moves beyond revenue collection to empirically modelling of the drivers of sustainable VAT revenue generation, thus offering a holistic framework linking VAT policy, administration, and taxpayer perceptions for developing economies.

Author Biographies

  • Ezekiel Aiyenijo Adigbole, Department of Accounting, Faculty of Management Sciences, University of Ilorin, Ilorin, Nigeria

    Dr. ADIGBOLE Ezekiel Aiyenijo (Ph.D.),

    Department of Accounting, University of Ilorin, Ilorin, Nigeria

  • Adeyemi Samuel Sopekan, Department of Accounting, Faculty of Management Sciences, University of Ilorin, Ilorin, Nigeria

    Dr. SOPEKAN Adeyemi Samuel (Ph,D.), Department of Accounting, University of Ilorin, Kwara State, Nigeria

  • Taiwo Azeez Olaniyi, Department of Accounting, Faculty of Management Sciences, University of Ilorin, Ilorin, Nigeria

    Prof. OLANIYI Taiwo Azeez (Ph.D.), Department of Accounting, University of Ilorin, Ilorin, Nigeria, 

  • Segun Abogun, Department of Accounting, Faculty of Management Sciences, University of Ilorin, Ilorin, Nigeria

    Dr. ABOGUN Segun (Ph,D.), Department of Accounting, University of Ilorin, Kwara State, Nigeria, 

  • Mubarak Abiodun Orilonise, Department of Accounting, Faculty of Management Sciences, University of Ilorin, Ilorin, Nigeria

    ORILONISE Mubarak Abiodun Department of Accounting, Faculty of Management Sciences, University of Ilorin, Ilorin, Nigeria.   PhD Student . Postgraduate Student 

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Published

2026-04-23

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Vol. 16 No. 1 (2026): JAM

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Copyright (c) 2026 Ezekiel Aiyenijo Adigbole, Adeyemi Samuel Sopekan, Taiwo Azeez Olaniyi, Segun Abogun, Mubarak Abiodun Orilonise

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Determinants of Sustainable Value-Added Tax Revenue Generation in Nigeria. (2026). The Journal of Accounting and Management, 16(1), 178-195. https://www.dj.univ-danubius.ro/index.php/JAM/article/view/3793