The Analyzing Market Structure, Tax Reforms and Revenue Mobilisation Under Nigeria's New Tax Policies

Abstract

Abstract
This study investigates how market structure and Nigeria’s new tax reforms interrelate to influence government revenue in Northern Nigeria’s cattle markets. Data was collected from three key livestock markets in Yobe State. Potiskum, Geidam, and Garin Alkali, the study employed the Structure Conduct Performance (SCP) framework and market concentration analysis (Herfindahl Hirschman Index, CR4) to evaluate the effects of market structure on tax performance. Results indicate that trader size and compliance score significantly predict tax paid, whereas market concentration (HHI) does not have a direct impact after controlling for trader level variables. The study further provides theoretical and empirical insights relevant to Nigeria’s fiscal reforms and informal sector taxation. Policy recommendations highlight the importance of digital tax collection systems and formalization of larger traders to improve internally generated revenue (IGR) for the State, Local Government and the Nation at large. Further study should investigate other factors necessary for enhancing markets revenue in other informal.
Keywords
Market structure, tax reform, cattle markets, informal economy, Structure Conduct Performance (SCP).