INSTITUTIONAL QUALITY, TECHNOLOGICAL INNOVATION, AND TAX REVENUE MOBILIZATION: IMPLICATIONS FOR INCLUSIVE ECONOMIC GROWTH IN NIGERIA

Institutional quality and technological innovation jointly determine Nigeria’s ability to strengthen tax revenue generation and promote inclusive economic growth, amid fiscal constraints. This study examined the effects of institutional quality and technological innovation on tax revenue mobilisation in five Nigerian states, namely, Lagos, Kano, Rivers, Kaduna, and Oyo, and their implications for inclusive economic growth. Using panel data from 2010 to 2023, Random Effects, GLS regression with AR(1) disturbances was employed to account for serial correlation. Results indicate that institutional quality, technological innovation and inclusive growth positively and significantly predict tax revenue mobilisation, whereas GDP growth is not significant. The model explains a substantial portion of variance in tax revenue mobilisation (within R² = 0.501, between R² = 0.892). The hypothesis tested confirmed that institutional quality and technological innovation are individually and jointly significant determinants. The findings underscore the need to strengthen governance, adopt technological innovations, and promote inclusive policies to enhance revenue mobilisation and sustainable economic growth in Nigeria. The study concludes that strong institutions and technology drive better tax revenue and inclusive growth. It was recommended that governance should be strengthened and digital tax systems should be expanded for efficient and fair revenue collection.