Original Research Article | OPEN ACCESS
Taxation in Period of Economic Crisis: Lessons for Nigeria

Ilemona Alfred Sani

Department of Accounting, Federal University, Kahere, Gombe State, Nigeria.;

For correspondence:-    

Received: February 04 2022        Accepted: March 23 2022        Published: March 31 2022

Citation: Sani IA. Taxation in Period of Economic Crisis: Lessons for Nigeria. Account Tax Rev 2022; 6(1):48-58 doi:

© 2022 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..


The study examined tax policy that can speed up economic recovery and growth in Nigeria. Data for the study on Gross Domestic Product (GDP) growth rate (dependent variable) and Company Income Tax Rate (CITR), Personal Income Tax Rate (PITR) Value Added Tax Rate (VATR) Import Tax Rate (IMPTR), Export Tax Rate (EXPTR) and petroleum Profit Tax Rate (PPTR) were collected. The explanatory variables were obtained from the Central Bank of Nigeria (CBN) and National Bureau of Statistics (NBS) bulletins from 2017-to 2021. The autoregressive Distributed Lag (ARDL) technique was used for the analysis. The bounds cointegration test result provides evidence of a long-run relationship between the variables. Further, it was also found that VATR, IMPTR and PPTR showed positive signs, and CITR, PITR and EXPTR showed negative signs in both the short and long run. The result is an indication that while an increase in CITR, PITR and EXPTR would be harmful to economic recovery and growth during an economic recession/crisis, on the other hand, an increase in VATR, IMPTR and PPTR is not harmful. It is recommended that the government as a matter of policy reduce her CITR, PITR and EXPTR. Further, while VATR should be left unaltered since it was increased in 2020, PPTR and IMPTR particularly IMPTR should be increased for the long-term benefit of a measure of economic independence the tax policy can fetch the nation.

Keywords: Tax policy, Economic recovery, Nigeria, Growth rate, short-run, Long run

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