Digital Financing and Taxation in the 4th Industrial Revolution: Evidence from Nigeria

The research investigates the consequences of digital financing on taxation in the fourth industrial revolution, with a focus on Nigeria. The primary goal of industry 4.0 characteristics is to increase income in both the municipal and private sectors. As a result, the government's embrace of digital finance is expected to increase tax revenue collection in Nigeria. In this study, we examine the effectiveness of digital financing instruments such as ATMs, point-of-sale terminals, and web-based or internet-based payments in increasing tax collection in Nigeria. Because the first statistics on digital finance recorded by CBN annual reports were published in 2006, the analysis spans the years from 2006 to 2019. We use multiple regression approaches to assess the effect of each digital financing tool and discover that only ATM has a substantial influence on tax income over the research period. Other digital finance gadgets have statistically negligible results. As a result, the study suggests that Nigeria's network be improved, as well as tax payers' knowledge and usage of digital finance instruments in order to comply with their tax responsibilities.