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

For correspondence:-    

Received: 15 Feb. 2918        Accepted: 28 March 2018        Published: 31 March 2018

Citation: Tax Revenue and Economic Growth in Nigeria. Account Tax Rev 2003; 2(1):16-23 doi:

© 2003 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 paper focus on the impact of tax revenue on economic growth in Nigeria. To achieve this, relevant data for the study were collected from secondary source which include Central Bank of Nigeria Statistical Bulletin; Abstract of Annual Data from the Office of National Bureau of Statistics (NBS) and the tax revenue data for this study were sourced from the Office of the Federal Inland Revenue Service for a time frame of 34 years (1981 to 2014). Ordinary regression method was used to analyse the data. From the analysis, we concluded that all tax variants exert a significant impact on GDP at 5% level and also have the expected positive sign.  The result suggests the uniformity of the response of GDP to tax derivatives and thus supports tax-economic growth linkage in line with the endogenous growth theory. Premised on the conclusion, the study recommended that the various sub-components of tax (direct and indirect) should be efficiently collected and utilised to enhance the overall living standard of the people and taxation should be made more dynamic and effective, within the Nigerian context, to promote its role in terms of sustainable economic growth.

Keywords: Tax, tax revenue, economic growth, gross domestic product


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