Evaluation of the Performance Federal Inland Revenue Service (FIRS) in Tax Revenue Generation in Nigeria : A Study of Kaduna State (2008-2012)

Tax is a major and indispensable source of government revenue that sustains nations all over the world. It is a compulsory and non-refundable payment to the government by its citizens. Tax revenue from the non-oil sector in Nigeria has been relatively low over the years and insufficient for any meaningful development. The need for an efficient tax system cannot be overemphasized in view of the dwindling oil revenue, infrastructural deficit with other socio¬economic challenges that have bedeviled Nigeria. It is in this regard that the study assessed the performance of FIRS in tax revenue generation in Kaduna state from 2008 to 2012. Primary and secondary data sources were used to generate all the data for this study. The primary data was obtained through questionnaires and analyzed using tables, simple percentages, pie- chart and chi-square. The secondary data was obtained from FIRS publications, FIRS Annual Financial Reports and Bulletins, FIRS documents, textbooks, journals, newspapers. internet facilities and other related materials. For comprehensive information, the primary sources of information were used to support the information obtained from the secondary sources and to further authenticate the information obtained from the primary sources. These were also analyzed using tables, simple percentages, pie-chart and chi-square and regression analysis. The findings of the study showed absence of tax culture and unpatriotic nature of the citizens, huge infrastructural deficit, and lack of qualitative socio¬economic activities as the major causes of poor tax revenue generation. There is also lack of an efficient tax coverage and a large informal sector not captured in the tax net of FIRS. The study recommended a massive infrastructural development by the government with corrupt free and efficient tax administration machinery, use of internet facilities for all tax transactions. There is also accountability and transparency of government officials in the management of tax revenue. Tax education, expansion of tax revenue base, and good governance, will ginger people's interest towards increased economic activities and voluntary tax compliance, which will enhance tax revenue generation by FIRS in Kaduna state and Nigeria at large