EFFECTS OF RELIGIOSITY ON TAX COMPLIANCE IN NIGERIA

Abstract

The objective of the study is to examine the relationship between the two components of
religiosity (interpersonal religiosity and intrapersonal religiosity) and the two components
of tax compliance (voluntary and enforced tax compliance) for self-employed taxpayers
in the South-South geographical region of Nigeria. The study used a cross-sectional
survey research design to obtain the opinion of the respondents about their religiosity and
tax compliance behavior. The data used for the analysis were obtained from copies of the
questionnaire administered on 450 self-employed taxpayers in Edo State, Delta State, and
Bayelsa State of Nigeria. Out of these 228 were retrieved, while only 200 were found
usable/used. Data analysis was carried out using descriptive statistics and the ordinary
least square multiple regression technique. The study finds that there is a high level of
both interpersonal religiosity and intrapersonal religiosity among Nigerians. The study
also finds a positive and significant relationship between the two components of
religiosity (interpersonal religiosity and intrapersonal religiosity) and voluntary tax
compliance. On the other hand, the study finds a positive but insignificant relationship
between the two components of religiosity (interpersonal religiosity and intrapersonal
religiosity) and enforced tax compliance. The study further finds that religiosity alone
does not explain the tax compliance decisions of Nigerians. The study recommends that
tax authorities and governments should attempt to harness the religiosity and religious
values of Nigerians through policies that encourage them to comply with tax laws