Tax Awareness Among Micro-Business Owners in Informal Settings

Author: Ayodele Ibrahim Shittu

ISSN: 2709-8575
Affiliations: Department of Economics, University of Lagos, Nigeria
Source: African Multidisciplinary Tax Journal, 2023 Issue 1, p. 254–272


This paper broadly seeks to examine the determinants of tax awareness among micro-entrepreneurs in informal settings in the Bariga Local Council Development Area (LCDA) of Lagos State, Nigeria. Specifically, this paper examines the effects of business size, business records and tax education on tax awareness among microentrepreneurs in informal settings there. Tax awareness in this study is treated as a dichotomous variable to test the statistical significance of each of the predictors. The study uses a multiple logistic regression analysis. The findings show that gender, education, business records and tax education are significant predictors of tax awareness among the micro-entrepreneurs in informal settings. The study makes a significant contribution to an understanding of taxation in informal sector, especially in the African context where the size of informal settings significantly impacts the sustainable development of the economy at large.