Uzoamaka Faith ONUNAKA1, Jennifer Odinakachi GODSPOWER2, Ogechi Eberechi ALPHEAUS3, John Uzoma IHENDINIHU4
1,2,3&4Department of Accounting, Michael Okpara University of Agriculture, Umudike, Nigeria.
Correspondence email address: [email protected]1,
Abstract
The study examined cyber-security challenges and digital taxation within Nigeria’s AI-driven tax administration, employing the Technology Acceptance Theory (TAT) as its theoretical framework. A descriptive survey research design was adopted, using structured questionnaires to gather data from a purposively selected sample of 100 employees of the Federal Inland Revenue Service (FIRS). Descriptive statistics (frequencies, percentages, and means) were used to analyze demographic data and research questions, while simple regression analysis tested the hypotheses. Findings revealed major cyber-security threats facing AI-based tax systems in Nigeria, including data breaches, system hacking, identity theft, insider threats, and AI manipulation. The study also identified several key strategies to mitigate these risks: enhancing cyber-security regulations, investing in secure AI infrastructure, strengthening staff training, establishing oversight institutions, and promoting international cooperation. Regression analysis showed that cyber-security threats significantly impact Nigeria’s digital tax systems, stressing the need for urgent intervention. Based on these findings, the study recommended adopting AI-powered threat detection tools to proactively manage cyber threats in digital taxation. It further advised the Nigerian government to develop and enforce a robust regulatory framework tailored to AI use in tax administration. To close the skills gap and enhance resilience, continuous training programs were also recommended for FIRS and state tax board personnel. Overall, the study emphasized the critical need for comprehensive strategies to protect Nigeria’s evolving AI-driven tax infrastructure from escalating cyber risks.
Keywords: Artificial Intelligence (AI), Digital taxation, Cyber-security, AI-driven tax administration, Technology