Impact of Digital Payment Systems on Revenue Generation of Federal Inland Revenue Service In Nigeria

Authors: Rilwanu Garba & Manir Umar

Affiliation: 1Sole Administrator Office, Federal Inland Revenue Service, Kebbi, Sokoto and Zamfara. No. 2, Alhassan Avenue off Kano Road Sokoto State

Corresponding Author: [email protected]

October 31, 2025

SIAR-Global Journal of Economics, Finance & Accounting

DOI: 10.5281/zenodo.17495529

Impact of Digital Payment Systems on Revenue Generation of Federal Inland Revenue Service In Nigeria
Research Article Management

Abstract

This study investigates the impact of digital payment systems on revenue generation for the Federal Inland Revenue Service (FIRS) in Nigeria, using a quarterly dataset spanning from the first quarter of 2009 to the last quarter of 2024. Employing Autoregressive Distributed Lag (ARDL) technique for data analysis, the findings indicate that both Remita (RMTA) and National Electronic Funds (NEFT) Transfer do not have a statistically significant impact on FIRS revenue during the analyzed period. This indicates that these platforms may not be effectively utilized for tax-related transactions or lack sufficient transaction volumes to impact overall revenue. Conversely, the result shows that Web Pay has a significant positive impact on revenue generation, indicating that transactions processed through this platform are likely associated with taxable activities, thereby enhancing revenue collection. The success of Web Pay can be attributed to its user-friendly interface and reliability, which encourage increased taxpayer engagement in digital transactions. However, the study also finds that Mobile Pay has a significant negative impacton FIRS revenue generation, potentially due to lower adoption rates for tax related transactions or challenges in tracking and reporting. Based on these findings, it is recommended that FIRS prioritize Web Pay, promote its adoption through targeted campaigns, and investigate the limitations of Remita and National Electronic Funds Transfer. Additionally, a comprehensive assessment of Mobile Pay is necessary to identify and address barriers, aiming to transform it into a more effective revenue generating tool for the FIRS. 

Keywords

Digital Payment Systems; Revenue Generation; RMTA; NEFT, Web Pay, Mobile Pay

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How to Cite

Rilwanu Garba & Manir Umar (2025). Impact of Digital Payment Systems on Revenue Generation of Federal Inland Revenue Service In Nigeria. SIAR-Global Journal of Economics, Finance & Accounting, Vol. 1, No. 1. DOI: 10.5281/zenodo.17495529

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Article Information

  • Type: Research Article
  • Journal: SIAR-Global Journal of Economics, Finance & Accounting
  • Subject Area: Management
  • Published: October 31, 2025
  • Volume: 1
  • Issue: 1
  • Word Count: Not specified
  • DOI: 10.5281/zenodo.17495529
  • Processing Fee: $50.00 USD

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