Stakeholders’ Engagement As A Strategy For Optimizing Voluntary Tax Compliance: A Case Study Of The Nigerian Tax Administration

Tax non-compliance has remained a major concern to the Nigerian government and fiscal policy experts. At the same time, the lack of revenue sources accounts for the country’s low tax/GDP ratio of 6% which currently hinders visible development. This study proposes that stakeholders’ engagement could be useful in promoting voluntary tax compliance, determined by high-level awareness, a positive tax-paying habit, and sustainable revenue flow into the treasury. The study explains stakeholder engagement as “an iterative process of actively soliciting the knowledge, experience, judgment, and views of persons selected to represent a broad range of interests, on an issue, to create a shared understanding, and making relevant, transparent, and effective decisions.” The research adopts a mixed-method approach, using a questionnaire, interviews, and focus groups, to gather data for the study. Close to 1,000 respondents participated in the survey, while fewer participated in the interview and focus group sessions. The qualitative data gathered was analyzed by assigning codes to the texts and later merged into categories, through thematic and content analytical methods, which yielded the seven (7) themes that eventually emerged. In contrast, the quantitative data was analyzed through descriptive and inferential statistics, to validate the initial qualitative findings. The two (2) data sources provided a firm basis for data triangulation. The study’s findings showed that stakeholders’ engagement can promote voluntary tax compliance, improve awareness, and engender a positive tax culture among the population, facilitated by critical tasks, such as tax education, tax collaboration, and assistance, resulting in accountability and transparency in governance, and improved tax morale. The quantitative survey results generalize the initial qualitative findings and strengthen the research conclusions.