ADVANCED JOURNAL OF FINANCE AND ACCOUNTING
Integrity Research Journals
Model: Open Access/Peer Reviewed
DOI: 10.31248/AJFA
Start Year: 2022
Email: ajfa@integrityresjournals.org
Tax revenue types and economic growth: Evidence from Nigeria
https://doi.org/10.31248/AJFA2024.017 | Article Number: 9F95E6EA1 | Vol.2 (2) - August 2024
Received Date: 02 July 2024 | Accepted Date: 22 August 2024 | Published Date: 30 August 2024
Authors: Kolawole Fijabi* , John Tawiah Oladapo , Tolulope Olatoyan and Rasheed Oparinde Lasisi
Keywords: Nigeria., gross domestic product, economic growth, non-oil tax, oil tax, tax revenue.
This paper examined the effect of tax revenues on the economic growth of Nigeria. The study adopted the ex post facto research design and used annual time series data for thirteen years (2010 – 2022). The data were sourced from the National Bureau of Statistics (NBS) and the Federal Inland Revenue Service (FIRS). The ordinary least squares of the multiple regression model were used for estimation. Gross domestic product a proxy of economic growth represents the dependent variable while oil tax and non-oil tax represent the independent variable. The findings revealed that non-oil tax had a negative and insignificant effect on the economic growth of Nigeria (Coefficient = -0.0101, p-value = 0.9879). In contrast, oil taxes had a positive and insignificant effect on the economic growth of Nigeria (Coefficient = 0.9657, p-value = 0.2031). The tax revenues had a positive and insignificant effect on the economic growth of Nigeria (F- statistics = 1.011, p-value = 0.39795, R2 = 0.002). The null hypothesis which stated that tax revenues had no significant effect on the economic growth of Nigeria could not be rejected. The study recommended that the government should provide an enabling structure that will stimulate the economy to encourage the generation of more tax revenues that will improve the economic growth of Nigeria and the need to improve on administrative aspect of revenue collection.
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