Tax Audits and Digital Economy Records of the Oil and Gas Sector in Nigeria

Abstract

This study investigated the relationship between tax audits and digital economy records in the oil and gas sector in Nigeria. Employing a quantitative cross-sectional survey design, structured questionnaires were administered to 320 tax officials and finance personnel in oil and gas companies operating in the Niger Delta region. The study examined desk audit and field audit as dimensions of tax audit, while online sales and payment gateway records served as measures of digital economy records. Data were analysed using descriptive statistics, Pearson correlation, and multiple regression analysis. Findings revealed that desk audit had a significant positive relationship with online sales records and payment gateway records. Similarly, field audit showed significant positive relationships with online sales records and payment gateway records. The regression models explained 52.4% and 48.7% of the variance in online sales records and payment gateway records utilisation, respectively. The study concludes that effective tax audit practices significantly enhance the utilisation of digital economy records in Nigeria's oil and gas sector. Recommendations include strengthening digital audit infrastructure, enhancing auditor training in data analytics, improving inter-agency collaboration, and developing comprehensive frameworks for integrating digital transaction records into routine audit processes.