Improving knowledge management framework in tax administration: Nigerian perspective

Tax administration in Nigeria is characterised by low tax revenue generation caused by administrative inefficiency. However, efficient knowledge management (KM) can improve tax administration efficiency and revenue generation. Therefore, the main objective of this research was to study knowledge management process in order to improve its efficiency and tax administration performance in Nigeria. The specific objectives of this study were: (a) to investigate how critical the inputs for the KM processes in the Federal Inland Revenue Service (FIRS) are; (b) to identify the KM processes for efficiency in FIRS; (c) to examine how the KM processes explain the outputs of FIRS and (d) to identify the strategies needed to improve KM in FIRS. The case study methodology was employed to achieve the objectives. Qualitative data were collected through face-to-face interviews with 20 tax administrators at FIRS. Data from the face-to-face interviews were also supported by a documentary study. Firstly, this study found that experience, technical session, formal and informal training, tax administrator and taxpayer e-services, leadership styles and skills, financial and non-financial motivation, “train the trainer”, meeting, knowledge and
information flow are critical inputs to the KM processes in FIRS. Secondly, the study revealed that socialisation, externalisation, combination and internalisation are essential mechanisms for efficient KM processes in FIRS. Thirdly, the expected results of the KM process activities are low operation cost, improve capability,
improve service delivery, increase task execution rate and access to taxable income as outputs in FIRS. Lastly, KM processes in FIRS can be improved by adequate provision of KM resources which involve human and materials. The main policy implication of this study is that KM and tax administration efficiency can be achieved
in FIRS by adopting the Holistic Knowledge Management Framework proposed by this study.