For correspondence:-
Received: October 27, 2020 Accepted: December 20, 2020 Published: December 31, 2020
Citation: Tax Revenue and Economic Growth in Nigeria: Evidence from Nigeria. Account Tax Rev 2005; 4(4):44-53 doi:
© 2005 The authors.
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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.
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