TAX REVENUE AND ECONOMIC DEVELOPMENT IN NIGERIA

  • Etoama, P. E Department of Accounting, Faculty of Management Sciences, University of Port Harcourt, Rivers State, Nigeria
  • Akani F.N Department of Accounting, Faculty of Management Sciences, University of Port Harcourt, Rivers State, Nigeria
  • Ogbonna G.N Department of Accounting, Faculty of Management Sciences, University of Port Harcourt, Rivers State, Nigeria
DOI: https://doi.org/10.5281/zenodo.8248810
Keywords: Tax Revenue, Economic development, Petroleum profit tax, Value Added tax, custom and excise duty, gross domestic product per capita, Inflation

Abstract

The study was conducted to investigate the impact of tax revenue on the economic development in Nigeria with reference to time frame that spanned from 1994 to 2021. The study employed gross domestic product per capita as measures of economic development and considered petroleum profit tax, value-added tax and custom and excise duty as tax revenue sources. also using inflation as the mediating variable Secondary data was employed from the annual report and repository of the Central Bank of Nigeria, the federal inland revenue services online report. The employed data analysis techniques in the study are the Stationarity, Autoregressive Distributive Lag, the stepwise, and the Granger Causality tests. The study observed mixed stationarity at level and first difference. In the long run, it was observed that only the immediate past value of petroleum profit tax revenue per capita, had a valuable influence on the economic development. Inflation rate was observed to positively and significantly moderate the relationship between tax revenue and economic development in Nigeria. The study therefore concludes that that tax revenue had selective effect on economic development in Nigeria. Based on these findings, the study recommended, among others that tax authorities should encourage individuals to pay tax so as to improve the growth of the economy which the companies would benefit from, Tax holidays or incentives should be given to companies and institutions and individuals who have been compliant to tax payment.

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Published
2023-08-15
How to Cite
P. E, E., F.N, A., & G.N, O. (2023). TAX REVENUE AND ECONOMIC DEVELOPMENT IN NIGERIA. GPH-International Journal of Business Management, 6(08), 83-104. https://doi.org/10.5281/zenodo.8248810
Issue
Vol 6 No 08 (2023): GPH-International Journal of Business Management
Section
Articles

Copyright (c) 2023 Etoama, P. E, Akani F.N, Ogbonna G.N

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