Cordilia Eke’s Study Examines Policy Options for Africa’s Digital Tax Future

By Salami Adeyinka

As African governments intensify efforts to regulate and tax the rapidly expanding digital economy, a recent study by Nigerian tax scholar Cordilia Eke is drawing attention among policy analysts and tax professionals evaluating how emerging economies can design effective digital taxation frameworks.

The study, titled “The Digital Economy and Tax Justice: Evaluating the Effectiveness of Digital Services Taxes (DSTs),” was published in the International Journal of Science and Research Archive. It provides a comparative analysis of how countries, including France, India, and Kenya, have implemented digital services taxes, examining their revenue outcomes, enforcement mechanisms, and compliance challenges.

Eke’s research comes at a time when many African economies are seeking practical approaches to taxing multinational digital platforms that generate significant revenue within their borders without maintaining a physical presence. Her analysis highlights how DSTs have emerged as interim policy tools to address gaps in international tax rules, particularly for developing economies.

In the paper, Eke argued that while digital services taxes offer governments an opportunity to expand their revenue base, their effectiveness depends on careful policy design.

She identified key requirements, including clear reporting frameworks, strong enforcement capacity, and administrative coordination to prevent double taxation and reduce compliance burdens.

The study also evaluates the risks of poorly structured DST regimes, noting that fragmented national approaches could create trade tensions and increase compliance costs for digital businesses operating across multiple jurisdictions.

Beyond comparative analysis, Eke’s study proposes policy options for African tax authorities, including the need for regional coordination, investment in tax administration capacity, and alignment with global tax frameworks, such as ongoing OECD-led reforms.

Analysts say such research is becoming increasingly important as countries across Africa confront the challenges of taxing cross-border digital transactions while maintaining competitiveness in a globalised economy.

Eke’s work has begun to circulate among tax practitioners and policy observers examining the implications of digital taxation reforms in Nigeria and across emerging markets. For stakeholders within Africa’s evolving fiscal policy landscape, the study underscores the growing role of evidence-based research in shaping how governments respond to the complexities of the digital economy.