EFFECTIVENESS OF VAT COLLECTION AND REMITTANCE BY SMALL AND MEDIUM ENTERPRISES IN YOLA (CASE STUDY: JIMETA MARKET TRADERS)

Abstract This research investigates the effectiveness of Value Added Tax (VAT) collection and remittance by Small and Medium Enterprises (SMEs) in Jimeta Market, Yola, with a focus on compliance, awareness, and administrative challenges. The study adopts a descriptive survey approach, using both primary and secondary data from registered traders, tax officers, and Federal Inland Revenue Service (FIRS) records. Findings reveal that while SMEs contribute significantly to economic development, their VAT compliance level remains low due to factors such as inadequate tax education, weak enforcement mechanisms, and poor record-keeping. The study further identifies that a large proportion of traders lack a clear understanding of VAT laws, resulting in underreporting and irregular remittance. Administrative inefficiencies within tax authorities also contribute to poor collection performance. Moreover, the informal nature of market operations in Jimeta reduces accountability and transparency in tax transactions. The analysis emphasizes the need for improved tax awareness programs, digital tax payment platforms, and policy reforms to strengthen compliance. The research concludes that an effective VAT collection and remittance framework can enhance revenue generation, support public infrastructure, and promote fiscal sustainability in Nigeria.