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Purpose

The paper aims to consider how a country like Nigeria, with an underdeveloped tax system, can adapt its tax generation mechanisms to meet the challenges of digital commerce in the 21st century.

Design/methodology/approach

The paper adopts a doctrinal approach.

Findings

The paper recommends measures that could be adopted to enhance the efficiency of the current tax systems, to allow it to take advantage of opportunities presented by digital transactions.

Originality/value

To the best the authors’ knowledge, this paper is the first of its kind to consider the taxation of digital transactions in the Nigerian context.

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