Effect of Tax Revenues on the Economic Development of Nigeria
Journal of Economics, Management and Trade,
Page 47-61
DOI:
10.9734/jemt/2022/v28i430404
Abstract
The main objective of this study is to examine empirically the effect of tax revenues on the economic development of Nigeria, judging its impact on the relationship between tax revenue and economic growth. Data was sourced from CBN statistical bulletin and the World Bank data. A multiple regression anal is was used for the analysis of the data which would consist of a fusion between the dimensions of time (time series). A quantitative research approach was used to analyze the regression results. Consequently, the findings from the study showed that custom and excise duties, companies income tax, petroleum profit tax, and value-added tax have a significant combined effect on gross domestics product in Nigeria. Similarly, results show that custom and excise duties (B = . 0.117, t=0.031948, p>0.05) and companies income tax (B = 0.539657, t = 2.2215895, p>0.05), petroleum profit tax (B = 0.103431, t = 2.370469, p>0.05), positive effect on GDP and have insignificant effect on gross domestics product, whereas cc (B=-0.452577, t=-0.836510, p>0.05) negative effect on gross domestics product but have insignificant effect on gross domestics product in Nigeria. It was concluded that tax revenue has an effect on the economic development in Nigeria. It was recommended that the government established a long-term goal through investment in infrastructural development.
Keywords:
- Custom and excise duties
- companies income tax
- petroleum profit tax and gross domestics product
How to Cite
Akintola, S. K., Omotola, A. A., Oyinbodunmi, B. M., & Akinyemi, E. K. (2022). Effect of Tax Revenues on the Economic Development of Nigeria. Journal of Economics, Management and Trade, 28(4), 47-61. https://doi.org/10.9734/jemt/2022/v28i430404
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Afuberoh D, Okoye E. The impact of taxation on revenue generation in Nigeria: A study of Federal Capital Territory and selected states. International Journal of Public Administration and Management Research (IJPAMR). 2014;2(2):22-47.
Ogbonna, Appah E. Impaction of tax reforms and economic growth of Nigeria: A time series analysis; 2012.
Ogbonna GN, AppahEbimobowei. “Impact of tax reforms and economic growth of Nigeria: A time series analysis” Current Research Journal of Social Sciences. 2012;4(1):62-68.
Ogbonna GN, Ebimobowei A. Impact of tax reforms and economic growth of Nigeria: A time series analysis, Journal of Social Sciences. 2012;4(1):62-68.
Nigeria Bureau of Statistics. (2016) “Poverty Report 2015”. Abuja.
Yakub, M.U. (2008). The Impact of Oil on Nigeria’s Economy: The Boom and Burst Cycle. Central Bank of Nigeria, Abuja.
Economy watch. Nigeria economic indicators; 2011.
Available: www.economy watch.com.
United Nations. Resource mobilization for economic development: The role of tax; 2000.
Soyode ‘Lekan, Kajola SO. Taxation principle and practice in Nigeria, Silicon publishing company Ibadan Nigeria; 2006.
Nightingale K. (Taxation theory and practices.4th ed. England Pearson Education Ltd; 2002.
Bird, Richard. Analysis of earmarked taxes, Tax notes international. 1997;14:95-116.
Jonathan DJ. Taxation, governance and resource mobilization in Sub-Saharan Africa: Presentation for African Economic Outlook 2010. Expert meeting resource mobilization and Aid in Africa; 2009.
Marsden K. Links between taxes and economic growth. World Bank staff working Paper Number 605, The World Bank Washington, D.C; 1983.
Bird R. Tax challenges facing developing countries: National Institute of Public Finance and Policy, New Delhi; 2008.
Nzotta SM. Tax evasion problems in Nigeria: A critique, Niger. Account. 2007; 40(2):40-43.
Odusola A. Tax policy reforms in Nigeria. World Institute for Development Economics Research; 2006.
Research Paper No. 2006/03.
Appah E, Oyandonghan JK. The challenges of tax mobilization and management in Nigeria economy. Journal of Business Administration Management. 2011;6(2):128-136.
Anyanfo AM. Public finance in a developing economy: The Nigeria case. Department of Banking and Finance. University of Nigeria, Enugu campus, Enugu; 1996.
Anyanwu JC. Nigerian public finance. Joanne educational publishers, Onitsha; 1997.
Tosun MS, Abizadeh S. Economic growth and tax components: An analysis of tax change in OECD, Applied. economics. 2005;37:2251-2263.
Engen E, Skinner J. Taxation and economic growth. National Tax Journal. 1996;49(4):617- 642.
Engen E, Skinner J. Taxation and economic growth. Nat. Tax J., Experiences”, in M. Gills (ed.), Tax Reform in Developing Countries, Duke University. 1996;49(4):617-642.
Golit PD. Appraising Nigeria’s tax effort: A comparative econometric analysis. economic and financial review, Central Bank of Nigeria. 2008;46(1):69-103.
Odusola AF. ‘Internally Generated Revenue at the Local Government: Issues and Challenges’. Paper presented at the Workshop on Revenue Generation at the State Government Level, October. Ibadan: University of Ibadan; 2006.
Abiola J, Asiweh M. Impact of tax administration on government revenue in a developing economy-A case study of Nigeria. International Journal of Business and Social Science. 2012;3(8).
Retrieved on the 8th of April, 2014
Available: https:// www.ijbssnet.com
Worlu CN, Emeka N. Tax revenue and economic development in Nigeria: A macro econometric approach. Academic Journal of Interdisciplinary Studies. 2012;21(46):121-139.
Osoro NE. Tax Reform in Tanzania: Motivations, Directions and Implications". A progress Report presented to the African Economic Research Consortium. Nairobi, Kenya; 1991.
Ebeke C, Ehrhart H. Tax revenue instability in Sub-Saharan Africa: consequences and remedies,” Mimeo, CERDI, Auvergne University; 2010.
Ghura D. Tax revenue in Sub-Saharan Africa: Effects of economic policies and corruption, IMF Working Paper 98/135, (Washington); 2006.
James A, Moses A. Impact of tax administration on government revenue in a developing economy. A case study of Nigeria. International journal of business and social sciences. 2012;3(8):99-113.
Guilia M, Mick M, Rhiannon M. Tax revenue mobilization in developing countries: Issues and challenges,policy department , WIB 06 M04a rue Wiertz 60, B-1047, Brussels; 2014.
Dwivedi DN. Manageria economics, 6th Edition Vikas Publishing House PVT Ltd. New Dehli; 2004.
Akintoye IR, Dada SO. Tax Justice and economic growth and development in Sub-Saharan Africa: evidence from Nigeria. Journal of Management policy. Global Initiative Centre for Scientific Research and Development, University of Ibadan, Nigeria. 2013;3.
Akintoye RI, Tashie GA. The effect of tax compliance on economic growth and development in Nigeria. West-Africa British journal of Arts and Social Sciences; 2013.
ISSN:2046-9578,11 (11)
World Bank. Nigeria GDP – GDP (current LCU). World Bank National accounts and OECD national account files; 2015.
Available from www.indexmundi.com (Accessed 17th April, 2016).
Marsden K. Links between taxes and economic growth: some empirical evidence World Bank staff working papers no. 1983;605.
Hirschman AO. The rise and decline development economics. Essay in trespassing economic to politics beyond. 1981;1-2.
Lindahl, Erik. "Just Taxation ñ A Positive Solution" (E. Henderson, transl.) in Musgrave, Richard A. and A.T. Peacock, Eds, Classics in the Theory of Public Finance. Macmillan; 1919.
Okonjo I. ( “Nigerian government hires tax consultants to increase revenue “ generation premium times Newspaper; 2013.
Adegbie FF, Fakile AS. Company income tax and Nigeria economic development, European Journal of Social Sciences. 2011;22(2).
Owolabi SA, Okwu AT. Empirical evaluation of contribution of value added tax to development of Lagos state economy, Middle Eastern finance and economics; 2011.
Lee Y, Gordon RH. Tax structure and economic growth, Journal of Public Economics. 2004;89.
Unegbu AO, Irefin D. Impact of VAT on Economic Development of Emerging Nations. Journal of Economics and International Finance. 2011;3(8):492-503.
Afuberoh D, Okoye E. The impact of taxation on revenue generation in Nigeria: A study of Federal Capital Territory and selected states. International Journal of Public Administration and Management Research (IJPAMR). 2014;2(2):22-47.
Ogbonna, Appah E. Impaction of tax reforms and economic growth of Nigeria: A time series analysis; 2012.
Ogbonna GN, AppahEbimobowei. “Impact of tax reforms and economic growth of Nigeria: A time series analysis” Current Research Journal of Social Sciences. 2012;4(1):62-68.
Ogbonna GN, Ebimobowei A. Impact of tax reforms and economic growth of Nigeria: A time series analysis, Journal of Social Sciences. 2012;4(1):62-68.
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