CUSTOM AND EXCISE DUTIES AND INFRASTRUCTURAL DEVELOPMENT IN NIGERIA (1997-2021)

Abstract

Every country strives for infrastructural development and to achieve this, they need revenue, and thus engage in revenue mobilization. Thus the study examined custom and excise duties and infrastructural development in Nigeria from 1997 - 2021. The specific objectives of the study examined the relationship between customs duties and infrastructural development in Nigeria. Also evaluated the relationship between excise and infrastructural development in Nigeria. And examined the moderating influence of real exchange rate in the relationship between custom and excise duties and infrastructural development in Nigeria from 1997 - 2021. The study adopted ex-post facto designs. The population and sample size of the study was the entire 36 states and the federal capital territory of Nigeria, covering twenty-six (25) years. The instrument of the study was annual time series data. The formulated research questions were analyzed with descriptive statistics. The hypotheses were tested using the least square panel data regression analysis with the aid of E-view (10). The findings of the study showed that there is significant relationship between customs duties and infrastructural development in Nigeria. There is no significant relationship between excise duties and infrastructural development in Nigeria. And also, real exchange rate does not have moderate influence in the relationship between custom and excise duties and economic development in Nigeria from 1997 – 2021. In line with the findings the study recommend that government should focus more on customs duties as a means of boosting the infrastructural development in Nigeria. Thus, adequate training and development of staff and other computerized revenue collection methods should be swiftly introduced in order to boost revenue generation. Nigeria's excise duties are in dire need of reforms and full implementation so that various loopholes that have served as conduit pipes for free outflow of revenue to individuals can be blocked. Also, corrupt, fraudulent, and other financial malpractice officers should be sacked or be punished. Finally, since the real exchange rate is found to have an insignificant and negative impact on the economy, reforms should be made to customs and excise duties and they should be more strictly adhered to as one of the mainstays of revenue generation in the country.