ABSTRACT
The informal economy plays a significant role in Nigeria's socioeconomic landscape, yet it often operates outside the purview of formal taxation. This research project aims at the digital technologies and tax revenue drive in the informal sector . With the rapid proliferation of digital technologies, including mobile payment systems, e-commerce platforms, digital identity system, the internet, this study investigated how these innovations have influenced tax compliance, revenue collection, and regulatory efforts within the informal sector. By employing a combination of qualitative and quantitative research methods, including surveys, interviews, and data analysis such as regression analysis and ANOVA test, this project seeks to provide insights into the changing dynamics of taxation in the informal economy.
Key objectives include to identify the potential of digital technologies, such as mobile phones, electronic invoicing, and digital identity systems, in enhancing tax collection and administration in the informal economy, to examine the current state of digital technology adoption and utilization in the taxation of the informal economy in Nigeria, to identify the challenges and opportunities associated with implementing digital technologies in the taxation of the informal economy, to examine the impact of digital technologies in the tax compliance behaviour of informal economy participants in Nigeria
The findings of this research are expected to shed light on the potentials, current state of digital technologies, opportunities and challenges associated with incorporating digital technologies into the taxation of the informal economy and its impact on the taxation of the informal economy in Nigeria. Ultimately, the study aims to offer valuable recommendations to policymakers, tax authorities, and stakeholders, with the goal of enhancing tax compliance, promoting economic inclusivity, and fostering sustainable growth in this crucial sector of the Nigerian economy.
