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Tax Revenue and Economic Growth: Empirical Evidence from Nigeria

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Listed:
  • Ifeoma Osamor
  • Godwin Omoregbee
  • Fadekemi Ajasa-Adeoye
  • Josephine Olumuyiwa-Loko

Abstract

Organizations reduced their tax revenue through tax evasion and avoidance, thereby affecting the economic growth of the country. In an attempt to further stress this assertion, this study aims to empirically examine the effects of tax revenue on economic growth in Nigeria. Tax revenue was a proxy with PPT, CIT, VAT and CTD, while economic growth was proxy with GDP. Ex post facto research design was employed, while time series quarterly data were collected from the statistical bulletins of CBN and FIRS for 10 years (2011-2020). Data collated were analyzed using descriptive analysis, unit root test, bounds cointegration test and ARDL. The findings revealed that PPT, CIT, VAT and CTD had positive insignificant effects on economic growth. The study concluded that tax revenue had insignificant effects on the economic growth of Nigeria and therefore, recommended that proper tax audit should constantly be carried out to reduce tax evasion and avoidance.

Suggested Citation

  • Ifeoma Osamor & Godwin Omoregbee & Fadekemi Ajasa-Adeoye & Josephine Olumuyiwa-Loko, 2023. "Tax Revenue and Economic Growth: Empirical Evidence from Nigeria," Journal of Economics and Behavioral Studies, AMH International, vol. 15(1), pages 15-26.
    • Handle: RePEc:rnd:arjebs:v:15:y:2023:i:1:p:15-26
    DOI: 10.22610/jebs.v15i1(J).3355
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    References listed on IDEAS

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    1. ONAKOYA Adegbemi Babatunde & AFINTINNI Oluwatobi Ibukun, 2016. "Taxation and Economic Growth in Nigeria," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 4(4), pages 199-210.
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    3. ONAKOYA, Adegbemi Babatunde & AFINTINNI, Oluwatobi Ibukun, 2016. "Taxation and Economic Growth in Nigeria," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 4(4), pages 199-210, December.
    4. Odusola, Ayodele, 2006. "Tax Policy Reforms in Nigeria," UNDP Africa Economists Working Papers 307339, United Nations Development Programme (UNDP).
    5. Edewusi, Damilola Gabriel & Ajayi, Ibidolapo Ezekiel, 2019. "The Nexus between Tax Revenue and Economic Growth in Nigeria," International Journal of Applied Economics, Finance and Accounting, Online Academic Press, vol. 4(2), pages 45-55.
    6. Ayeni Olasubomi Adefolake & Cordelia Onyinyechi Omodero, 2022. "Tax Revenue And Economic Growth In Nigeria," Cogent Business & Management, Taylor & Francis Journals, vol. 9(1), pages 2115282-211, December.
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