Research Article Published 28 July 2019

A Conceptual Review of the Challenges of Effective Tax Collection from the Informal Sector in Kano, Nigeria

How to Cite

How to Cite

Kofar Wambai, U. S., Derashid, C., & Ibrahim, I. (2019). A Conceptual Review of the Challenges of Effective Tax Collection from the Informal Sector in Kano, Nigeria. Journal of Business Management and Accounting, 9(1), 1-13. https://doi.org/10.32890/jbma2019.9.1.8737
Usman Sani Kofar Wambai
Tunku Puteri Intan Safinaz School of Accountancy, College of Business Universiti Utara Malaysia, Sintok, Kedah, Malaysia
Chek Derashid
Tunku Puteri Intan Safinaz School of Accountancy, College of Business Universiti Utara Malaysia, Sintok, Kedah, Malaysia
Idawati Ibrahim
Tunku Puteri Intan Safinaz School of Accountancy, College of Business Universiti Utara Malaysia, Sintok, Kedah, Malaysia
Full text
PDF View full text 398 KB · 13 pages XML JATS full text 57 KB · machine readable HTML Read online 42 KB
DOI 10.32890/jbma2019.9.1.8737 Cite this article
Share this article
Citations
0
No citations recorded yet
Reads
494 +2
Abstract + full text
Downloads
321 +1
PDF and XML

Article

Abstract

The informal sector is often referred to as unregulated financial undertakings and poses a serious challenge to government in relation to tax revenue collection. The main issue of concern is why a wide gap exists between the actual tax collections from the informal sector and the potential tax that should be collected. Thus, the main aim of this study is to identify and examine some of the challenges militating against effective tax collection from the informal sector in Kano State, Nigeria. The paper is literature based, as such, it critically examines current literature on tax collection. It was discovered that issues such as reliance on cash based transactions, absence of required records and weak tax laws are some of the challenges preventing effective tax collection from the informal sector. It is therefore recommended that tax collection from the informal sector could be enhanced when government educates the informal operators, strengthens tax laws, emphasize on adequate records keeping and simplify the formalization procedures.

Keywords
Tax collection revenue informal sector Nigeria

Metrics & impact

Citations by source

Harvested 08-09-2026

Counts differ by index because each source crawls a different corpus. Crossref counts only registered reference lists; Google Scholar includes theses, preprints and grey literature.

OpenAlex
0
Open corpus, updated daily View →
OpenCitations
0
Open references only View →
Crossref
0
Deposited reference lists only View →
Scopus
0 Not indexed
Indexed titles only View →
Google Scholar
Publishes no citation count that can be read automatically.
Includes theses and preprints Search →
Dimensions
Publishes no citation count that can be read automatically.
Includes policy documents Search →

Reads & downloads

Abstract views 494
PDF downloads 321
XML downloads 0
Full-text HTML 0
Counted under COUNTER Release 5 rules; known robots excluded.

Attention beyond citation

Field-weighted citation impact 0.00
Works this article cites 20

From OpenAlex. A field-weighted impact of 1.00 is the world average for work of the same field, type and year. No Altmetric key is configured, so news, policy and social attention are not shown.

Identifiers
DOI · 10.32890/jbma2019.9.1.8737
OpenAlex · W4318716671

References

References 38
Deposited to Crossref with the article DOI
  1. Adesoji, A. A., & Chike, F. O. (2013). The effect of revenue generation on infrastructural development: A study of Lagos state internal revenue service. Journal of Educational Research, 3(2).
  2. Asimiyu, A. G., & Kizito, E. U. (2014). Analysis of internally generated revenue and its implications on fiscal viability of state governments in Nigeria. Journal of Empirical Economics, 2(4), 216-228.
  3. Calbreath, D. (2016). “Hidden economy, a hidden anger”. Retrieved from Cambridge: Cambridge University Press.
  4. Celine, A., (2017). The informal economy in Sub–Saharan Africa: Regional economic outlook, Sub-Saharan Africa, April 2017.
  5. Edogbanya, A., & Sule, J. G. (2013). Revenue generation: Its impact on government development effort (a selected local council in Kogi east Senatorial districts). Global Journal of Management and Business Research Administration and Management 13(4), 12-26.
  6. Ekpo, A. H., & Umoh, O. J. (2014). The Informal Sector. Today Newspapers, Monday, June 2014.
  7. Eugene, N., & Abigail, E. C. (2016). Effects of tax policy on economic growth. International Journal of Business Administration, 7(1).
  8. Feige, E. L. (1989). The underground economies: Tax evasion and information distortion. Cambridge University Press.
  9. Godfrey, P. C. (2011). Toward a theory of the informal economy. The Academy of Management Annals, 5(1), 231-277.
  10. Genevieve, H. (2016). The informal sector and taxation in Nigeria. The Barcode Newsletter, Still waters law firm Nigeria, 2(2). Management Annals, 5(1), 231-277.
  11. Hart, K. (1973). Informal income opportunities and urban employment in Ghana. Journal of Modern African Studies, 11(1): 61-89.
  12. International Labour Organization, (1972). Employment, incomes and equality: A strategy for increasing productivity in employment in Kenya, Geneva.
  13. Joshi, A., & Ayee, J. (2009). Taxation for the state, politics, revenue and the informal sector in Ghana. IDS Bulletin, 11(3).
  14. Kleen, M. (2012). Tax and development – again’, in G. Zodrow and C. Fuest: Taxation in developing countries. Cambridge MA: MIT Press.
  15. Maxwell, J. A. (2006). Literature reviews of and for educational research: A commentary on Boote & Beile scholars before researchers. Educational Research, 35(9), 28-31.
  16. McKenzie, D. & Sakho, Y. (2010). Does it pay firms to register for taxes? The impact of formality on firm profitability. Journal of Development Economics, 91(1).
  17. Moore, J. (2010). Philosophy of Science, with special consideration given to Behaviourism as the philosophy of the science of behaviour. Philosophical records, 60, 137-150.
  18. Muhammad, A., Arslan, Q. Adeel, N., Shabbir, H., Kanwal, I. K. & Sehrish B. (2011). Determinants of tax revenue: A comparative study of direct taxes and indirect taxes of Pakistan and India. Journal of Business and Social Science, 2(19), 173-178.
  19. Mudavanhu, Y. (2017). Quality of literature review and discussion of findings in selected papers on integration of ICT in teaching, role of mentors and teaching science through science, technology, engineering and mathematics (STEM). Academic Journal of Educational Research, 12(4), 189-201.
  20. Musa, A. (2006). Expanding the tax base in the informal Sector in Nigeria. A publication of the civil society legislative advocacy centre (CSLAC), Abuja-Nigeria. Accessed online, 14/04/2016. National Bureau of Statistics/Joint Tax Board (NBS/JTB, 2015). Internally generated revenue at state level (2008-2014) in selected state-update. National Bureau of Statistics/SMEDAN (2013): A joint survey on small and medium enterprises.
  21. National Tax Policy (2012). A Publication of the Federal Ministry of Finance, Nigeria.
  22. Njeru, A. (2012). Tax Justice Network Africa. Tax Spot Light, second quarter, Vol. 3.
  23. Okoye, P. V. C., Akenbor, C. O. & Obara, L. C. (2012). Promoting sustainable tax compliance in the informal sector in Nigeria. An International Journal of Arts and Humanities, 1(1), 40-54.
  24. Olusola, O. (2011). Boosting internally generated revenue of local governments in Ogun State, Nigeria (A Study of selected Local Governments in Ogun State). European Journal of Humanities and Social Sciences, 8(1), 9-18.
  25. Olusola, O. O. & Slyanbola, T. T. (2014). The role of internally generated revenue in Local government administration in Nigeria. Journal of Business Management and Social Science Research, 3(5), 40-44.
  26. Oseni, M. (2013). Internally generated revenue in Nigeria: A panacea for state development. European Journal of Humanities and Social Sciences, 21(1), 1050-1066.
  27. Oriakhi, D. E. & Osenwenge, P. K. (2013): Tax Incentives and Revenue Productivity of the Nigerian Tax System. International Journal of Development and Economic Sustainability, 1(1), 31-44.
  28. Otu, H. B., & Theophilus, O. A. (2013). The effects of tax revenue on economic growth in Nigeria (1970-2011). International Journal of Humanities and Social Science Invention, 2(6).
  29. Patrick, S. (2011). Taxation and the informal sector: MBA Thesis. Kwame Nkrumah University of Science and Technology, Kumasi, Ghana.
  30. Portes, A. Manuel, C., & Benton, L. A. (1989). The Informal Economy: Studies in Advanced and Less Developed Countries. The Johns Hopkins University Press, Baltimore.
  31. Pyrczak, F. (1999). Evaluating Research in Academic Journals. A Practical Guide to Realistic Education. Pyrczak Publishing 1999.
  32. Revenue Mobilisation Allocation and Fiscal Commission, Nigeria. (2016). Government Press. Vol. 2.
  33. Sethuraman, S. V. (1981). The Urban informal sector in developing countries, Employment, Poverty and Environment. International labour organization, Geneva, Switzland.
  34. Sethuraman, S. V. (1981). The Urban Informal Sector: Concept, Measurement and International Labour Review, 114(1), 69-81.
  35. Tanzi, V. (1982). The Underground Economy in the United States and Abroad (ed.), D.C Heath and Co. Lexington, Massachusetts, Toronto. U.S.A.
  36. Udoh, E., Ebong, F. S., & Ekpenyong, C. D. (2008). Oil windfall revenues and public expenditure on social services in Nigeria: Lessons from past experience. Proceedings of annual Conference of Nigerian Economic Society held in Abuja, Nigeria, September.
  37. Tutik, R. (2014). Informal Sector and Local Government Revenue: “The contributions of street vendors”. Journal Administrati Publik. Vol. II(1).
  38. Wambai, U. S. & Hanga, B. Y. (2013). Taxation and societal development in Nigeria: Tackling Kano’s hidden economy. International Journal of Academic Research in Business and Social Science, 3(3), 113-125.

Most read articles by the same author(s)