The Impact of Artificial Intelligence (AI) on Tax Compliance of Listed Manufacturing Companies in Nigeria

Amos Sunday Adeusi and Olayemi Omowumi Ayoola-Akinjobi
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Amos Sunday Adeusi: Department of Accounting, Faculty of Administration and Management Sciences, Adekunle Ajasin University, Akungba Akoko, Ondo State amos.adeusi@aaua.edu.ng
Olayemi Omowumi Ayoola-Akinjobi: Research and Technical Department, Chartered Institute of Taxation of Nigeria (CITN) ayoyemi2001@gmail.com

Journal of Taxation and Economic Development, 2026, vol. 25, issue 1, 14-30

Abstract: This study examined the impact of artificial intelligence (AI) on tax compliance of listed manufacturing companies in Nigeria. Drawing on panel data from 34 firms over a multi-year period, the study decomposes AI technological intensity into AI-enabled ICT intensity, AI software intensity, and AI capital investment, while controlling for firm size. The analysis used fixed effects (FE), random effects (RE), and two-step difference generalised method of moments (GMM) to account for unobserved heterogeneity, simultaneity, and dynamic endogeneity. The study revealed that AI software intensity had a coefficient of -1.6129 with a p-value of 0.622, indicating an insignificant negative relationship. The coefficient for AI capital investment is positive at 0.5511, but statistically insignificant (p = 0.340), and AI ICT intensity has a negative coefficient of -5.7525 with a p-value of 0.213, suggesting a non-significant inverse relationship between AI-enabled ICT deployment and tax compliance at the 5% level, thereby concluding that AI technology had no statistically significant effects on corporate tax compliance. The study revealed that tax compliance is not driven by technological investment in artificial intelligence infrastructure, software deployment, and AI-related capital assets. The study recommended placing greater emphasis on strengthening audit monitoring, tax enforcement, and transparent reporting obligations

Keywords: Artificial intelligence; corporate tax compliance; fixed effects; generalised method of moments; digital governance; tax technology (search for similar items in EconPapers)
Date: 2026
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