INDIRECT TAX REVENUE AND ECONOMIC DEVELOPMENT IN NIGERIA

Authors

  • Olusegun, Jimoh Fatai (PhD, CNA)
  • Onowu, Joseph Uche (PhD, CNA)

Keywords:

Indirect Tax, Economic Development, Vat, Poverty Index, Human Development Index, Import Tax Efficiency, Export Efficiency

Abstract

This study determined indirect tax revenue and economic development from 1991 – 2020. The specific objectives of the study were to; determine the effect of value added tax (VAT) efficiency on poverty index in Nigeria; determine the effect of VAT efficiency on per capita income growth in Nigeria; determine the effect of VAT efficiency on human development index (HDI) in Nigeria; determine the effect of import tax efficiency on poverty index in Nigeria; determine the effect of import tax efficiency on per capita income growth in Nigeria; determine the effect of import tax efficiency on HDI in Nigeria; determine the effect of VAT efficiency on poverty index in Nigeria; determine the effect of VAT efficiency on per capita income growth in Nigeria and determine the effect of VAT efficiency on HDI in Nigeria. Secondary data on the poverty index, HDI, per capita income, VAT efficiency, imports and exports tax efficiencies were sourced from CBN statistical bulletin and World Bank data base. The collected data were analyzed with the techniques of stationarity test (ADF unit root test) and ordinary least squares (OLS) multiple regression analysis. The empirical results showed that; indirect tax revenue measured by VAT efficiency has negative relationship with poverty index. Similarly export tax efficiency has negative relationship with poverty index While, import tax efficiency has positive relationship with poverty index in Nigeria. ALSO, VAT efficiency, import tax efficiency and export tax efficiency were positively related with both per capita income and HDI in Nigeria during the period of study. More so, indirect tax revenue measured by VAT efficiency, import and export tax efficiencies jointly impacted on economic development in Nigeria during the period of study. Based on these findings it was concluded that indirect tax revenue has significant effect on economic development. I was recommended amongst others that; Government should formulate and implement export policy measures towards exporting goods that are growth and development drivers, particularly, refined goods in the area the nation has comparative advantage in order to make the domestic production viable and compete with the industrialized economy of the world..

Downloads

Published

2025-01-25

How to Cite

Jimoh Fatai (PhD, CNA), O., & Joseph Uche (PhD, CNA), O. . (2025). INDIRECT TAX REVENUE AND ECONOMIC DEVELOPMENT IN NIGERIA . BW Academic Journal. Retrieved from https://bwjournal.org/index.php/bsjournal/article/view/2603