Impact of Taxation on Wealth Creation in Nigeria (2010-2023)

The study examined the impact of taxation on wealth creation in Nigeria for a period of fourteen years (2010-2023). The study's specific goal is to evaluate the influence of total tax, petroleum profit tax, nor oil tax, and value added tax on wealth creation in Nigeria. Correlational research design is used for this study. The study employs secondary form of data which have been sourced from Central Bank of Nigeria (CBN) statistical bulletin and published Federal Inland Revenue Statement (FIRS). Data extracted from published reports of the CBN and the FIRS are analyzed by means of descriptive statistics, correlation and multiple regressions. The study found that taxation (direct and indirect) is generally an instrument for sustainable revenue generation and collection, stabilization of the economy, controlling productive and consumption behaviors and narrowing of the gap between the rich and the poor. Individually, some taxes have more impact on wealth creation than others. For example, the impact of Petroleum Profit Tax (PPT) is higher than that of Companies Income Tax (CIT) or Value Added Tax (VAT). The study recommends that the government should intensify efforts at blocking all loopholes in the tax laws as well as bring more prospective taxpayers (firms and individuals) into the tax net, especially those big businessmen and women, who do not pay taxes properly. More so, the Nigerian government should judiciously use the tax revenue collected for executing various developmental projects, including the empowerment of micro, small, and medium enterprises that would improve the quality of livelihood and infrastructures in the country, with a view to creating massive wealth which could pave way for the country towards sustainable development.