Dr Chinda Godstime Nyema
Department of Accountancy
Faculty of Administration and Management
Rivers State University, Nkpolu-Oroworukwo, Port Harcourt
godstime.chinda@ust.edu.ng 08065377442
Dr Marshal Iwedi
Department of Finance
Faculty of Administration and Management
Rivers State University, Nkpolu-Oroworukwo, Port Harcourt
marshal.iwedi@ust.edu.ng 07085178646
Abstract
The convergence of tax diversification and the digital economy presents a dual challenge and opportunity for Nigeria.
The digital revolution has fundamentally reshaped economic paradigms, necessitating a reevaluation of conventional tax frameworks. This study explores the intricacies, including the complexities of digital transactions, the imperative for global coordination, concerns over data privacy, as well as compliance and enforcement obstacles, rapid technological advancements, and the potential for unintended consequences. Yet, the integration of tax diversification strategies in response to the digital economy offers substantial benefits for Nigeria. Prospects include heightened revenue generation, invigorated economic growth, heightened appeal for foreign investments, improved taxpayer compliance, and the cultivation of technological innovation. Furthermore, aligning tax policies with global economic trends positions Nigeria as a formidable contender in the swiftly evolving digital arena. To effectively navigate these complexities and seize the opportunities at hand, policymakers and tax authorities must prioritize adaptability, innovation, and collaborative efforts. A strategic approach to tax diversification, fortified by robust technological infrastructure and effective enforcement mechanisms, holds the key to Nigeria maximizing the advantages of the digital economy while upholding fiscal stability and equity. In summary, Nigeria possesses the potential to leverage the digital revolution as a catalyst for economic expansion, innovation promotion, and augmented revenue generation.
Through the embrace of tax diversification strategies tailored to the digital age, Nigeria can assert itself as a dynamic force in the global digital economy, reaping the dividends of technological progress and sustained economic prosperity.
Keywords: Tax Diversification, Digital Economy, Economic Growth, Technological Innovation, Nigeria, Fiscal
Stability, Global Economic Trends.