International Journal of Sub-Saharan African Research (IJSSAR)

Background: Nigeria continues to face persistent challenges in tax revenue mobilisation despite several administrative and institutional reforms. Concerns remain regarding the efficiency and effectiveness of tax collection, particularly in key revenue areas such as Value Added Tax (VAT) and Corporate Income Tax (CIT). Performance appraisal systems within the Nigeria Revenue Service (NRS) are expected to enhance staff productivity, accountability, and service delivery; however, empirical evidence on how appraisal mechanisms influence tax collection outcomes remains limited. This study therefore evaluates the performance appraisal of the NRS and its effect on tax collection efficiency and effectiveness in Nigeria.
Objective: The study aims to examine the effect of performance appraisal on tax collection efficiency and effectiveness in Nigeria, with specific focus on VAT and CIT administration within the Nigeria Revenue Service.
Method: A descriptive survey research design was adopted. Primary data were collected using a structured questionnaire administered to staff of the Nigeria Revenue Service and relevant stakeholders. Data analysis was conducted using the Statistical Package for Social Sciences (SPSS). The study employed descriptive statistics, reliability tests, and simple linear regression analysis to test the hypotheses at a 5% level of significance.
Result: The findings indicate that performance appraisal has a positive and statistically significant influence on VAT collection efficiency and effectiveness. Similarly, performance appraisal was found to have a significant positive effect on CIT collection efficiency and effectiveness in Nigeria.
Conclusion: The study concludes that effective performance appraisal mechanisms enhance employee productivity, accountability, and overall revenue performance within the Nigeria Revenue Service, thereby improving tax collection efficiency and effectiveness.
Unique Contribution: This study provides empirical evidence linking performance appraisal systems directly to tax revenue outcomes (VAT and CIT) in Nigeria, an area that has received limited scholarly attention, thereby enriching the discourse on public sector performance management and tax administration.
Key Recommendation: The Nigeria Revenue Service should strengthen its performance appraisal systems, link appraisal outcomes to rewards and staff training, and ensure transparency and objectivity in performance evaluation to further improve tax collection efficiency and effectiveness.