Factor Analysis of Government Performance and Tax Morale in Nigeria

The paper made a factor analysis of the variables that shape the tax morale of individuals in developing economies as well as the factors that citizens considered to be important in assessing government performance. Data from the Afrobarometer Survey 6 Questionnaire administered on Nigerians was used for the analysis. Desk review of several journal articles was made to extract the relevant factors used for the study. A collection of variables offered in the literature as determinants of tax morale and the aspects of government that are measured when assessing government performance were synthesized as measurement parameters. Both exploratory and confirmatory factor analyses were conducted using principal component analysis. The study established that the data from Afrobarometer Survey 6 on Nigeria was found reliable with adequate goodness of fits, which is significant for any study. The paper found six of the items on the questionnaire suitable to measure tax morale and ten other items suitable as measures of government performance under three dimensions as an improvement on economic issues, infrastructure provision, and social issues. The paper recommends that the government and other policymakers should pay sufficient attention to tax morale and the performance of government, especially adequate provision of food and improving the standard of living among the poor citizens before attempts at controlling crime.