Chapter One — 1.1 Background to the Study

Going Concern Assessment has increasingly attracted the attention of researchers, regulators, and practitioners concerned with tax revenue collection. This growing interest reflects the recognition that going concern assessment does not operate in isolation, but interacts with a wider set of institutional and market conditions found within Selected Federal Government Parastatals in Nigeria.

Selected Federal Government Parastatals in Nigeria presents a useful setting for examining this relationship precisely because the conditions there — structural, regulatory, and behavioural — differ from those typically assumed in the broader literature, most of which draws on evidence from more developed economies.

1.2 Statement of the Problem

While going concern assessment is widely discussed in policy and industry circles, empirical evidence on its actual effect on tax revenue collection within Selected Federal Government Parastatals in Nigeria remains sparse and, in places, contradictory. This lack of localized, rigorous evidence makes it difficult for decision-makers to know with confidence whether current approaches to going concern assessment are helping or hindering tax revenue collection — a gap this study sets out to close.

1.3 Objectives of the Study

1. To examine the effect of Going Concern Assessment on tax revenue collection in Selected Federal Government Parastatals in Nigeria.
2. To assess the extent to which going concern assessment influences tax revenue collection within the study area.
3. To identify the challenges associated with going concern assessment in relation to tax revenue collection.
4. To recommend strategies for optimizing going concern assessment in order to improve tax revenue collection.

1.4 Research Questions

1. What is the effect of going concern assessment on tax revenue collection in Selected Federal Government Parastatals in Nigeria?
2. To what extent does going concern assessment influence tax revenue collection within the study area?
3. What challenges are associated with going concern assessment in relation to tax revenue collection?
4. What strategies can be adopted to optimize going concern assessment in order to improve tax revenue collection?

1.5 Significance of the Study

This study is significant to a range of stakeholders. For policymakers and regulators, the findings offer evidence to guide the design of frameworks that support healthier outcomes around tax revenue collection. For managers and practitioners within Selected Federal Government Parastatals in Nigeria, the study provides practical insight into how going concern assessment can be better managed. Finally, it contributes to the academic literature on accounting by extending existing knowledge into a specific empirical context, and offers a reference point for future researchers.

1.6 Scope of the Study

The study is limited to an examination of Going Concern Assessment and its relationship with tax revenue collection within the context of Selected Federal Government Parastatals in Nigeria. It reflects a MSc-level scope of analysis and relies on data and perspectives available within that scope; generalizing the findings beyond this specific context should therefore be done with appropriate caution.