Chapter One — 1.1 Background to the Study

In recent years, Digitalization of Tax Administration has emerged as a critical factor shaping stakeholder trust across organizations operating in and around Selected Federal Government Parastatals in Nigeria. As institutions grapple with the pressures of globalization, regulatory reform, and shifting stakeholder expectations, understanding how digitalization of tax administration relates to stakeholder trust has become an important area of both scholarly and practical concern.

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 digitalization of tax administration is widely discussed in policy and industry circles, empirical evidence on its actual effect on stakeholder trust 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 digitalization of tax administration are helping or hindering stakeholder trust — a gap this study sets out to close.

1.3 Objectives of the Study

1. To examine the effect of Digitalization of Tax Administration on stakeholder trust in Selected Federal Government Parastatals in Nigeria.
2. To assess the extent to which digitalization of tax administration influences stakeholder trust within the study area.
3. To identify the challenges associated with digitalization of tax administration in relation to stakeholder trust.
4. To recommend strategies for optimizing digitalization of tax administration in order to improve stakeholder trust.

1.4 Research Questions

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

1.5 Significance of the Study

Beyond its academic contribution to the field of accounting, this study has practical value for management teams within Selected Federal Government Parastatals in Nigeria seeking to understand how digitalization of tax administration translates into measurable outcomes around stakeholder trust. It is equally useful to students and future researchers looking for a localized empirical reference on this relationship.

1.6 Scope of the Study

The study is limited to an examination of Digitalization of Tax Administration and its relationship with stakeholder trust within the context of Selected Federal Government Parastatals in Nigeria. It reflects a clearly defined 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.