Analytical Study of the Research Gap in Behavioural Economics Applications to Tax Compliance in Nigeria

Tax compliance in Nigeria is chronically low, and while traditional deterrence-based explanations have been studied, behavioural economics offers alternative explanations grounded in cognitive biases and social norms that remain underexplored in the Nigerian context. This study examined the research gap in behavioural economics applications to tax compliance in Nigeria through systematic review and original experimental design. A systematic scoping review of 11 databases identified only 9 publications from 2018 to 2024 applying behavioural economics to Nigerian tax compliance, compared to a rich international experimental literature. Original experimental research used a randomised controlled trial in Lagos State, where 600 SME taxpayers were randomly assigned to one of four nudge conditions: social norm messaging (most taxpayers in your area comply), loss-framing messaging, simplification of filing process, and a control group receiving standard FIRS reminder letters. The social norm treatment produced the largest compliance improvement, increasing on-time filing by 16.8 percentage points (p < 0.001). Loss-framing was the second most effective treatment. Simplification showed modest effects. The study identifies four priority research gaps including peer network effects on compliance and the role of tax morale. Recommendations include FIRS incorporating behavioural nudges into its compliance communication strategy, commissioning state-level experimental replications, and establishing a Behavioural Economics Unit within FIRS. Keywords: behavioural economics, tax compliance, Nigeria, nudge, randomised controlled trial