This paper analyzed the impact of technology diffusion on efficiency in the tax administration system in the Nigeria Revenue Service (NRS), regarding three main aspects of digital transformation, which include e-invoicing adoption on one side through the implementation of the Merchant Buyer System and on the other side, through automation of tax collection processes under the TaxProMax platform as well as the adoption of technology solutions throughout administrative processes. The study synthesizes evidence of peer-reviewed articles, institutional publications, and international case studies in 2018-2025. The results indicate that e-invoicing plays a critical role in enhancing compliance efficiency in taxes because it increases the degree of transparency in transactions and decreases the act of under-reporting. Tax automation can increase the effectiveness of revenue collection by decreasing the processing time, increasing the accuracy of data, and optimizing work processes. Moreover, the implemented technology solutions have a positive effect on the satisfaction of users, when the systems are reliable, convenient to use, and they develop trust, convenience, and readiness to comply. The paper indicates that there are a number of gaps in current literature, such as inadequate multidimensional efficiency measures, insufficient focus on user-experience deliverables, and disjoined analyses of technology elements in the context of tax administration in Nigeria. This study is a contribution to the overall picture of the effects of digital tax reform since it engages in disaggregating technology diffusion and using a multi-dimensional efficiency model. It is concluded that long-term investment in technology, integration of the system, high legislative support, and improved institutional capabilities are necessary to make the most out of the digital transformation in NRS and become in line with the best practices in the world.
Keywords: Automation, Nigerian Revenue Service (NRS), Tax ProMax, Tax administration efficiency, Technology diffusion, digital tax systems, e-invoicing, tax compliance., user satisfaction
