Chapter Three: RESEARCH METHODOLOGY
3.0 Introduction
This chapter presents the methodology adopted for examining the problems and prospects of
company income tax administration in Nigeria, focusing on the Federal Inland Revenue Service
(FIRS) in Plateau State. It details the research design, data sources, study area, population,
sample size, and sampling techniques. Data were gathered from primary sources through
structured questionnaires and interviews, and from secondary sources such as journals and
official records. The validity and reliability of instruments were ensured through expert review
and test-retest methods. Data analysis involved descriptive statistics and t-test application to
evaluate the hypotheses and draw meaningful conclusions.
3.1 Research Design
A research design serves as a systematic framework for collecting, measuring, and analyzing
data in a study. It outlines the procedures necessary to obtain the information needed to structure
or solve research problems (Saunders et al., 2019). This study adopts a survey research design,
which is suitable for obtaining data from a representative sample of respondents to understand
broader patterns and trends (Creswell & Creswell, 2018). The survey design is particularly
appropriate for this research, as it allows for the investigation of the problems and prospects of
company income tax administration in Nigeria, with a focus on the Federal Inland Revenue
Service (FIRS) in Plateau State.
The survey method provides flexibility and enables the collection of both qualitative and
quantitative data, which helps in drawing reliable conclusions and testing hypotheses (Bell,
Bryman & Harley, 2022). By using structured questionnaires and interviews, the study aims to
gather data from FIRS staff on issues such as tax evasion, enforcement challenges, and
administrative reforms. This approach ensures a comprehensive understanding of the
phenomenon under investigation, enhancing the study’s validity and generalizability (Sekaran &
Bougie, 2020).
3.2 Source of Data
This study relied extensively on both primary and secondary data sources to investigate the
challenges and prospects of company income tax administration in Nigeria, with a focus on the
Federal Inland Revenue Service (FIRS) in Plateau State. The combination of these data sources
allowed for a comprehensive and reliable analysis of the research problem (Saunders et al.,
2019).
3.2.1 Primary Data
Primary data were obtained directly from the respondents through structured questionnaires and
oral interviews administered to selected staff of the FIRS in Plateau State. The questionnaire was
designed with a mixture of closed-ended questions using a Likert scale format, providing options
such as “Strongly Agree,” “Agree,” “Disagree,” and “Strongly Disagree.” This ensured
consistency, clarity, and ease of analysis (Creswell & Creswell, 2018).
Additionally, oral interviews were conducted to complement the questionnaire. These interviews
offered in-depth insights and helped mitigate the limitations of structured responses by clarifying
ambiguous answers and reducing response bias (Bell, Bryman & Harley, 2022). The
combination of questionnaires and interviews enhanced the richness and validity of the data
collected.
3.2.2 Secondary Data
Secondary data comprised information already available in published and unpublished materials.
These were sourced from academic journals, textbooks, government gazettes, and official reports
from the Federal Inland Revenue Service, as well as relevant policy documents and literature
reviews on tax administration in Nigeria. Secondary sources provided contextual background and
theoretical grounding to support the primary data (Sekaran & Bougie, 2020).
In summary, the integration of both data types enabled a thorough and multidimensional
examination of the research objectives.
3.4 Population of the Study
The population of this study encompasses the entire workforce of the Federal Inland Revenue
Service (FIRS) within Plateau State. The FIRS plays a crucial role in Nigeria’s revenue
mobilization and tax administration, making it a significant focus for examining the issues
surrounding company income tax administration. At the time of this research, the total number of
employees at the FIRS Plateau State offices was 382 staff members. This figure was obtained
through official internal records and administrative documentation from the FIRS.
The population is stratified according to the organizational hierarchy to allow for the inclusion of
various perspectives across different administrative levels. The breakdown of the population is as
follows:
Top Management Staff – 95
Middle Management Staff – 110
Senior Staff – 87
Junior Staff – 90
Total – 382 Staff Members
This stratification ensures a holistic understanding of the operational challenges and
administrative procedures within the organization. Studying a well-defined population structure
is essential to achieving research validity and enhancing the representativeness of findings (Oino,
Towett, & Yegon, 2021). The inclusion of personnel from all levels provides a well-rounded
basis for examining the effectiveness and challenges in company income tax administration.
3.5 Sample Size and Sampling Technique
To select a representative subset of the study population, this research employed Taro Yamane’s
(2017) formula for determining sample size. The formula provides a simple and scientific
method for calculating a suitable sample size from a given population.
N
n=
1+ N ( e ) 2 n
Where:
n = Sample size
N = Population size (382)
e = Level of significance (0.05)
382
n=
1+ 382 ( 0.05 ) 2
1.955≈195n
Thus, the calculated sample size is 195 respondents, which is deemed sufficient for generalizing
the results to the entire population within a 95% confidence level. To enhance accuracy, a
stratified random sampling technique was used to ensure proportional representation across
different job categories. The sample was allocated as follows:
Top Management – 45
Middle Management – 55
Senior Staff – 48
Junior Staff – 47
This technique enhances the reliability and representativeness of the data by ensuring that views
from all hierarchical levels of the FIRS are captured (Mukhtar et al., 2022). Moreover, stratified
sampling reduces sampling bias and increases the precision of the study outcomes (Akinyemi &
Ogunyemi, 2023). The chosen sample size is consistent with contemporary practices in
administrative and organizational research (Uzonwanne, 2023).
3.6 Validity of Instruments
Validity refers to the degree to which an instrument measures what it is intended to measure. To
ensure this, the research instruments—questionnaires and interview guides—were reviewed and
validated by the research supervisor and academic experts. This helped to confirm content and
face validity, ensuring all items were relevant, clear, and aligned with the study objectives
(Creswell & Creswell, 2022).
Pilot testing was conducted with a small group of FIRS staff to refine the questionnaire and
eliminate ambiguities. The questions were further aligned with theoretical constructs such as tax
compliance and administrative efficiency, enhancing construct validity (Saunders et al., 2019).
Additionally, the study applied triangulation by incorporating both quantitative and qualitative
data—through interviews, questionnaires, and document reviews—to enhance the credibility and
depth of the findings (Yin, 2023).
The use of well-structured instruments, expert validation, and data triangulation ensures that the
tools used for data collection were methodologically sound and suitable for addressing the
research problem.