Efforts & challenges of Nigeria value added tax: from 2000-2020

Abstract

This paper aims to analyze the efforts and challenges of the Value Added Tax (VAT) system in Nigeria from 2000 to 2020. The introduction of VAT in Nigeria was necessary as part of the government’s fiscal planning to mobilize revenues and strengthen the Nigerian economy. The VAT system has been in operation for more than two decades, and its implementation had its challenges and successes. This study seeks to explore the efforts made and challenges encountered by the Nigerian government in the successful implementation of the VAT system/ from the period under review. A qualitative research approach was adopted, and data was gathered through a literature review. The findings of this study revealed that while the introduction of the VAT system has resulted in increased revenues for the government, there are still challenges that need to be addressed.These challenges include poor tax compliance, weak compliance infrastructure, capacity building, inadequate administrative infrastructure, inadequate enforcement, lack of efficiency, inadequate usage of technology, politicization of the system, and inadequate public awareness. The study concludes by suggesting several measures that could be taken to address these challenges and improve the effectiveness of the system.