Original Research Article | OPEN ACCESS
Taxation and Revenue Generation in Nigeria

T. A. Adegbite1 H. T. Fasina2

1Department of Accounting and Finance, Kings University, Odeomu, Osun State, Nigeria.; 2Department of Management and Accounting, Ladoke Akintola University of technology, Ogbomoso, Oyo State, Nigeria..

For correspondence:-  T. Adegbite   Email: adetajud@yahoo.com

Received: 23 January, 2019        Accepted: 15 March, 2019        Published: 31 Marcch 2019

Citation: Adegbite TA.Fasina HT. Taxation and Revenue Generation in Nigeria. Account Tax Rev 2019; 3(1):82-92 doi:

© 2019 The authors.
This is an Open Access article that uses a funding model which does not charge readers or their institutions for access and distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0) and the Budapest Open Access Initiative (http://www.budapestopenaccessinitiative.org/read), which permit unrestricted use, distribution, and reproduction in any medium, provided the original work is properly credited..

Abstract

This study examined the effects of taxation on revenue generation in Nigeria. It also analysed the direction of causality between taxation and revenue generation utilizing method of Johansen co-integration and the Granger causality tests using secondary data spanning the period 1970 to 2017. Results showed that PPT has positive significant effect on REV.VAT, CORPT and CUSEXC also had positive significant effect on REV. But CUSEXC has the lowest significant effect on REV both in the short run and in the long run. All the components of taxation showed bidirectional causality with government revenue in Nigeria because PPT, VAT, CORPT and CUSEXC, jointly, Granger-cause REV. It is concluded that taxation had positive significant impact on revenue generation of government both in the short run and in the long run. It is now recommended that the regulatory authorities charged with the responsibility and accountability of collecting tax should further be supported and empowered by government to impose compliance on taxpayers, and bring tax evasion and avoidance into tax net so as to generate more revenue for the government to implement its fiscal responsibilities.

Keywords: Nigeria; PPT; CORPT;VAT; Revenue; Impact


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