TAX REVENUE AND NIGERIAN ECONOMIC DEVELOPMENT (1994-2021)
Abstract
Motivated by the rising budget deficit in Nigeria and the need for reinforced revenue sources in Nigeria, the study examined the implication of tax revenue on economic development in Nigeria over the period of 1994-2021. The study employed the human development index as measures of economic development and considered personal income tax, company income tax and value-added taxas tax revenue sources and inflation as 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 personal income tax revenue per capita and company income 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 has a selective effect on economic development in Nigeria. and recommended among others that; There should be a more effective supervision of the tax revenue by the tax regulatory authorities.
Downloads
References
Adereti, S. A., Sanni, M. R., & Adesina, J. A. (2011). Value added tax and economic growth of Nigeria. European Journal of Humanities and Social Sciences. 10(1), 456-71.
Agbigbe, P., Akcigit, U., Cage, J., & Kerr, W. R. (2016). Taxation, corruption, and growth. European Economic Review, 86, 24-51.
Ashiedu, I. P., Okafor, T. G., Amahalu, N. N., & Obi, J. C. (2022). Effect of tax revenue on national development of Nigeria. International Journal of Advanced Academic Research, 8(1), 50-64Awa and Ibeanu, (2018)
Ayuba, A.J. (2014). Impact of non-oil revenue on economic growth: the Nigerian perspective. International Journal of Finance and Accounting. 3(5), 303-309.
Babatunde A., Ibukun, O. & Oyeyemi, G. (2017). Taxation revenue and economic growth in Africa, journal of accounting and taxation, 9(2), 11-22.
Central Bank of Nigeria (2008). Annual reports and statistical bulletin. Engle, R. and Granger, C. (1987). “Co-Integration and Error-Correction: Representation, Estimation and Testing.” Econometrica, 55: p251-76
Central Bank of Nigeria (2017). Statistical bulletin, Golden Jubilee Edition, December, 2013Francisca, 2022
Ibanichuka, E. L., Akani, F. N., &Ikebujo, O. S. (2016). A Time Series Analysis of Effect of Tax Revenue on Economic Development of Nigeria. International Journal of Innovative Finance and Economics Research, 4(3), 16-23.
Jacob, M. (2022). Real effects of corporate taxation: A review. European Accounting Review, 31(1), 269-296.
Li, S., & Lin, S. (2023). Housing property tax, economic growth, and intergenerational welfare: The case of China. International Review of Economics & Finance, 83, 233-251.
Nguyen, H. T., & Darsono, S. N. A. C. (2022). The Impacts of Tax Revenue and Investment on the Economic Growth in Southeast Asian Countries. Journal of Accounting and Investment, 23(1), 128-146.
Nwinee, B. F. & L. L. Torbira (2012), Public financial management, University of Port Harcourt Press.
Ofoegbu, G. N., &Akwu, D. O. (2016). Empirical analysis of effect of tax revenue on economic development of Nigeria. International Journal of Asian Social Science, 6(10), 604-613.
Ofoegbu G. N., Akwu, D.O. & Oliver, O. (2013). Empirical analysis of effect of tax revenue on economic development of Nigeria. International Journal of Asian Social Science.
Ogundele, A. E.(1999). Elements of taxation. Libri Service Lagos.1st Edition:
Ojo, S. (2008). Fundamental principles of Nigerian tax, Lagos, Sagribra Tax Publications.
Okeke, M. N., Mbonu, C. M., & Ndubuisi, A. N. (2018). Tax Revenue and Economic Development in Nigeria: A Disaggregated Analysis. International Journal of Academic Research in Accounting, Finance and Management Sciences, 8(2), 178-199.
Okezie, S. O., &Azubikem J. U. (2016). Evaluation of the Contribution of Non Oil Revenue to Government Revenue and Economic Growth: Evidence from Nigeria. Journal of Accounting and Financial Management. 2(5), 41-51.
Peterson, T., & Bair, Z. (2022). United states tax rates and economic growth. SAGE Open, 12(3), 21582440221114324.
Rahman, M. M. (2022). The effect of taxation on sustainable development goals: evidence from emerging countries. Heliyon, 8(9), e10512.
Riti, J. S., Gubak, H. D., & Madina, D. A. (2016). Growth of Non-Oil Sectors: A Key to Diversification and Economic Performance in Nigeria. Public Policy and Administration Research. 6(3), 64-75.
Soyode, L. and S. O. Kajola, (2006).Tax: principles and practice in Nigeria. Study Group on Tax reform (2003). Nigerian Tax Reform in 2003 and Beyond: The Main Report of the Study Group on the Nigerian Tax System. Abuja. 1st Edition:Ibadan, Silicon.
Copyright (c) 2023 Etoama, P. E, Akani F.N, Ogbonna G.N
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Author(s) and co-author(s) jointly and severally represent and warrant that the Article is original with the author(s) and does not infringe any copyright or violate any other right of any third parties, and that the Article has not been published elsewhere. Author(s) agree to the terms that the GPH Journal will have the full right to remove the published article on any misconduct found in the published article.