Evaluating the role of Strategic Communication Channels in facilitating tax compliance among the informal sector in Lagos State

Abstract

This study investigates the effectiveness of strategic communication channels in promoting tax compliance within Lagos State’s informal sector, focusing on the role of communication strategies, taxpayer attitudes, and communication channels. Despite the sector’s significant contribution to Nigeria’s economy, tax compliance remains low, often due to distrust, limited awareness, and inadequate engagement mechanisms. Using a cross-sectional survey of 1,308 informal business operators, data were analyzed through one-sample t-tests and correlation techniques. The findings reveal that the communication strategies adopted by the Lagos State Internal Revenue Service (LIRS) are effective in encouraging compliance, with a statistically significant mean score (M = 3.55, p < 0.05). Strategic communication was strongly correlated with positive taxpayer attitudes (r = 0.814, p < 0.01), indicating that persuasion and trust-building significantly enhance willingness to comply. Similarly, communication channels were positively correlated with compliance (r = 0.767, p < 0.01), demonstrating the importance of tailoring channels to diverse audience needs. The results align with Attitude Change Theory, the Theory of Planned Behaviour, Social Norms Theory, Communication Accommodation Theory, and Trust Theory, confirming that compliance behaviour is influenced by attitudes, norms, and institutional trust. The study concludes that multi-channel, audience-sensitive communication is essential for improving voluntary compliance and recommends a blend of traditional, digital, and face-to-face strategies to optimize effectiveness.