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Effect Of Tax Revenue On The Economic Growth Of Nigeria

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Abstract

Nigeria is an oil-producing nation, for a long time now the country has been a monoproduct economy that has been described by Economists as a dangerous trend; for the revenue of the country to be solely based on oil revenue. It has been established by researchers that revenue from oil is very volatile. Oil revenue is high today, it drastically reduced tomorrow. This study examined the contribution of Tax revenue to the economic growth of the country within a period of 12 years, that is, from 2007 to 2018. Data were collected through secondary sources from the Nigeria Bureau of Statistics, the Quarterly Publications of the Central Bank of Nigeria Bulletins, and the Federal Inland Revenue Service (FIRS) Statistical Reports, Journals, textbooks, and other related publications were reviewed for the study. Data were analyzed using simply linear regression model. The findings revealed that there exists strong positive relationship between tax revenue and GDP with correlation coefficient of 0.6755 and it is significant but a very weak relationship between total revenue and GDP (r= 0.2488), that revenue from tax was significant to the economic growth of Nigeria, compared with total revenue that comprises oil revenue and non-oil revenue. This study recommends that the country should put more energy into non-oil sector of the economy such as income from taxation, export of non-oil products and technological products to generate the necessary foreign exchange needed to boost the economy of the country which will impact on the life of every citizen.

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  • Ifeoluwa Adelusi, Abosede, 2019. "Effect Of Tax Revenue On The Economic Growth Of Nigeria," Journal of Taxation and Economic Development, Chartered Institute of Taxation of Nigeria, vol. 18(2), pages 126-138, September.
    • Handle: RePEc:ris:jotaed:0020
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