ABSTRACT
The primary objective of this study was to investigate whether tax revenue (Company Income Tax (CIT), Custom Excise Duties (CED) and Value-Added (VAT)) will individually, and or, jointly affect the economic growth of Nigeria. Accordingly, this study adopts an ex-post facto research design. The study data covered a period of 40 years (1980 – 2020). The data for the study was sourced from the Central Bank of Nigeria (CBN), Federal Inland Revenue Services (FIRS) and National Bureau of Statistics (NBS). The data collected were analyzed using autoregressive distributive lag Model (ARDL). The findings of this paper revealed that tax revenues have long run relationships with economic growth of Nigeria. The implication is that effective mobilization of tax revenues in the economy will contribute significantly to real gross domestic product and development in the long run in Nigeria. Also, it was demonstrated that customs and excise duties have a negative and significant effect on economic growth in Nigeria in the long run. Company Income Tax (CIT) was found to have a positive and insignificant effect on the real gross domestic product in the long run in Nigeria. Value-added tax was also found to have a positive and significant effect on real gross domestic product in the long run in Nigeria. This study concludes that tax revenue, as measured by CIT, CED and VAT play a very significant role in the economic growth of Nigeria and recommend that government should strengthen the tax system as it affects economic growth and development.
Support the magazine and subscribe to the content
This is premium stuff. Subscribe to read the entire article.
