Original Research Article | OPEN ACCESS
Tax Revenue and Economic Growth in Nigeria: Evidence from Nigeria

Emmanuel Eze1 John O Onyedikachi .2

1Department of Accounting, Rhema University, Nigeria; 2Department of Physical Sciences, Rhema University, Nigeria.

For correspondence:-  Emmanuel Eze   Email: ezemma20@gmail.com

Received: October 27, 2020        Accepted: December 20, 2020        Published: December 31, 2020

Citation: Eze E.Onyedikachi . JO. Tax Revenue and Economic Growth in Nigeria: Evidence from Nigeria. Account Tax Rev 2020; 4(4):44-53 doi:

© 2020 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

Based on mixed findings from prior research works on tax revenue and economic growth in Nigeria, this study was conducted to unravel Real Gross Domestic Product's response to tax Revenues. The dataset was gleaned from the Central Bank of Nigeria Bulletin and the Federal Inland Revenue Service Website from 2008 to 2019. The independent variables of tax revenues were regressed against the dependent variable, economic growth, usingthe real gross domestic product as a proxy. The results of multiple regressions carried out by the Ordinary Least Square statistical technique showed a significant positive statistical relationship with real gross domestic product except for Value Added Tax that showed a negative and statistically insignificant relationship at a 5% level of significance. In view of the findingsand the current precarious oil market prices, it was recommended that the government should increase the tax base through the provision of infrastructures that will enable more businesses to thrive while accountability and transparency should be pursed to avoid massive revenue diversification to personal pockets of some corrupt tax officials.

Keywords: Tax Revenue, Real Gross Domestic Product, Economic Growth, Tax Policy, Petroleum Profit Tax.


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