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@article{202838,
        author = {Dr. Miriam Ladi Onoja and Mohammed Abuabakar Haruna, PhD, FCNA, FCTI},
        title = {Impact of AI Adoption on the Taxation System and Implications for Socio-Economic Inequality in Nigeria},
        journal = {International Journal of Innovative Research in Technology},
        year = {2026},
        volume = {12},
        number = {12},
        pages = {10104-10117},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=202838},
        abstract = {The rapid adoption of artificial intelligence (AI) has transformed public sector administration globally, with taxation systems increasingly leveraging AI to improve efficiency, transparency, and compliance. In developing economies such as Nigeria, the implications of AI-driven tax reforms for socio-economic inequality remain insufficiently explored. This study investigates the impact of AI adoption on taxation system efficiency and examines its implications for socio-economic inequality in Nigeria, with particular emphasis on the mediating role of AI adoption. The study adopts a survey research design and relies on primary data collected from staff of the Federal Inland Revenue Service (FIRS)/Nigeria Revenue Service (NRS). Data were analysed using descriptive statistics, Pearson correlation analysis, multiple regression techniques, and mediation analysis following the Baron and Kenny framework. The empirical findings reveal that AI adoption has a significant and positive effect on taxation system efficiency. The results also show a significant relationship between AI adoption and socio-economic inequality. In addition, taxation system efficiency is found to be significantly associated with socio-economic inequality. However, the mediation analysis indicates that AI adoption does not significantly mediate the relationship between taxation system efficiency and socio-economic inequality. While the taxation system’s efficiency influences both AI adoption and inequality, the indirect effect transmitted through AI adoption is weak and statistically insignificant. The study concludes that although AI adoption is a valuable instrument for strengthening tax administration in Nigeria, its capacity to address socio-economic inequality is limited when implemented in isolation. The study recommends a strategic expansion of AI infrastructure and human capacity to optimise tax administration efficiency and revenue forecasting. Furthermore, it advocates for the integration of equity-focused design and broader institutional, governance, and inclusion-oriented policy reforms to ensure that technological advancements facilitate progressive taxation and contribute to the reduction of socio-economic inequality. This study contributes to the literature on AI and public finance from a developing economy context, which offers policy-relevant insights for designing inclusive digital tax reforms in Nigeria.},
        keywords = {Artificial Intelligence; Taxation System Efficiency; Socio-Economic Inequality; Tax Administration; Digital Governance.},
        month = {May},
        }