Tax Administration Efficiency and Internally Generated Revenue in Oyo State

This study evaluates the efficiency of tax administration processes and their impact on internally generated revenue (IGR) performance in Oyo State, South West Nigeria. Oyo State has undertaken several administrative reforms within its internal revenue service over recent years, including the introduction of electronic payment platforms, expansion of the taxpayer register, and performance-based staff incentive schemes. Despite these efforts, IGR growth has not fully met targets. Using a professional applied research design combining quantitative and qualitative methods, the study draws on interviews with twenty senior officials from the Oyo State Internal Revenue Service, analysis of annual IGR performance reports from the last six fiscal years, and a survey of 80 taxpayers across Ibadan and Ogbomosho. Key efficiency indicators examined include cost of revenue collection as a percentage of IGR, processing time for tax assessments, and taxpayer satisfaction scores. Descriptive statistics and efficiency ratio analysis are applied. The study expects to find that while electronic platforms have improved PAYE collection efficiency, direct assessment of self-employed individuals remains labour-intensive and inefficient. Recommendations include deploying an integrated taxpayer management information system, benchmarking Oyo State IRS performance against the Lagos IRS as a regional best practice, expanding self-assessment filing options, and establishing quarterly performance reviews against IGR targets. Keywords: tax administration, IGR, Oyo State, efficiency, internal revenue service.