Impact of Tax Revenue on Economic Growth and Economic Development in Nigeria

ABSTRACT

The broad objective of this study is to examine the impact of tax revenue on economic growth and Economic development in Nigeria. Specifically, the study examine the impact of value added tax (VAT), Company income tax (CIT), Petroleum profit tax (PPT), education tax (EDT) and Customs and excise duties (CED) on economic growth and Economic development in Nigeria proxied by real gross domestic product (RGDP) and human development index (HDI).

Longitudinal and ex-post facto research approach was adopted using Multiple Ordinary Least Square regression technique by employing annual time series data for the period of 1994 to 2018 to estimate a linear model of tax revenue and real gross domestic product and also tax revenue and human development index in Nigeria. The data were obtained from various issues of the Central Bank of Nigeria Statistical Bulletin and Annual Report, Federal Inland Revenue Service Quarterly Reports, National Bureau of Statistics, World Bank country specific reports and United Nations Human Development Report. The data were analyzed with the aids of Econometric View (E-View) Student Version 10.