The Role of Digital Finance Platforms in Managing the Fiscal Space and Enhancing the Efficiency of Tax Collection and Administration at Subnational Levels in Nigeria

Nigeria faces significant fiscal challenges, compounded by armed conflicts, inefficient tax collection, and widespread revenue leakages, which have weakened governance across its 36 states. This proposal explores the role of digital financial platforms, particularly the Treasury Single Account (TSA), in enhancing tax collection and expanding fiscal capacity at sub-national levels in Nigeria. Despite TSA’s implementation at the national level, its adoption at the state level remains limited. This study seeks to address this gap by conducting a randomized evaluation of the adoption, challenges, and impact of TSA on tax collection across twelve Nigerian states. Through a combination of primary data from state revenue boards and secondary data on tax practices, the study aims to develop a pilot proposal to inform further interventions. The project aspires to provide a foundation for improving fiscal sustainability and governance through digital technologies at subnational levels.