Tax Compliance and Internally Generated Revenue Growth in Ebonyi State

Improving tax compliance is fundamental to expanding the internally generated revenue base of state governments in Nigeria, where overdependence on federal allocations has constrained fiscal autonomy and development spending. This study investigates the relationship between tax compliance behaviours and internally generated revenue growth in Ebonyi State, with attention to the role of taxpayer education, enforcement, and administrative simplification. The study is grounded in the Theory of Planned Behaviour, which posits that tax compliance is shaped by taxpayers' attitudes toward compliance, subjective norms regarding tax payment, and perceived behavioural control over compliance actions. A survey research design was adopted. The population included registered taxpayers in Ebonyi State, State Internal Revenue Service staff, and tax consultants, from which 240 respondents were sampled through stratified random selection. A structured questionnaire served as the primary data collection instrument, and responses were analysed using logistic regression and descriptive statistics. Findings indicate that tax compliance is positively associated with awareness of tax obligations, trust in the revenue authority, and perceived fairness of the tax system. High informality, multiple taxation by local governments, and distrust in how revenues are utilised were identified as barriers to compliance. The study concludes that widening the tax net requires complementary administrative reform and public trust-building. It is recommended that the revenue service launch a taxpayer education campaign, introduce simplified payment platforms, and publish annual reports on how tax revenues are allocated to public services.

Keywords: Tax Compliance, Internally Generated Revenue, Ebonyi State, Fiscal Policy, Revenue Administration