Informal Sector Taxation and Revenue Mobilisation in Sokoto State

This research explores the taxation of informal sector operators and its implications for revenue mobilisation in Sokoto State, North West Nigeria. The informal economy in Sokoto, encompassing petty traders, transporters, artisans, and small-scale agricultural processors, constitutes a large share of the state's economic activity but contributes minimally to its tax revenue pool. This study employs a descriptive survey approach, collecting data from 200 informal sector operators across major markets in Sokoto metropolis using structured questionnaires. The questionnaire assesses awareness of tax obligations, experience with revenue collection agents, willingness to pay, and perceptions of fairness. Secondary data from the Sokoto State Board of Internal Revenue on IGR components are also incorporated. Descriptive statistics and chi-square analysis are applied. The study expects to find that the absence of formalised business registration, low financial literacy, and distrust of government tax agents are the primary barriers to informal sector tax compliance in Sokoto. It also anticipates that presumptive tax schemes are largely unknown to the target population. Recommendations include rolling out a community-based tax registration drive in partnership with ward councils and market associations, designing a simple presumptive tax schedule calibrated to sector and business scale, and deploying trained community tax educators. Linking tax payment to tangible community benefits, such as improved market infrastructure, is also recommended as a compliance incentive. Keywords: informal sector, taxation, revenue mobilisation, Sokoto State, presumptive tax.