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Effect of Informal Sector Tax Revenue on Capital Development in Lagos Metropolis

Author

Listed:
  • Olabisi Jayeola

    (Federal University of Agriculture, Abeokuta, Nigeria)

  • Afolabi Adegboyega

    (Crescent University, Abeokuta, Nigeria)

  • Olagunju Adebayo

    (Osun State University, Osogbo, Nigeria)

  • Madariola Folasade Ajewole

    (Crescent University, Abeokuta, Nigeria)

Abstract

The study investigates the effect of informal sector tax proceeds on capital development in Lagos Metropolis. The study adopted Ex-post facto design to obtain secondary data, covering 20 years (2000–2019) from the Lagos State Internal Revenue Service and the Ministry of Budget and Planning. All the series were tested for normalities to determine the appropriateness of Ordinary Least Square (OLS) regression. The results of the study revealed that tax collected from the association, petty traders, and market men and women had a significant effect on capital development in Lagos Metropolis. It is evident from the monumental capital projects being executed by the government in the Metropolis. The study recommends that the government should not only create an enabling environment for the informal sector to thrive but also give all necessary support for its survival because the sector has contributed to the capital development of the Metropolis through tax revenue.

Suggested Citation

  • Olabisi Jayeola & Afolabi Adegboyega & Olagunju Adebayo & Madariola Folasade Ajewole, 2020. "Effect of Informal Sector Tax Revenue on Capital Development in Lagos Metropolis," Economics and Business, Sciendo, vol. 34(1), pages 1-14, February.
    • Handle: RePEc:vrs:ecobus:v:34:y:2020:i:1:p:1-14:n:1
    DOI: 10.2478/eb-2020-0001
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    References listed on IDEAS

    as
    1. Grace N. Ofoegbu & David O. Akwu & Oliver O, 2016. "Empirical Analysis of Effect of Tax Revenue on Economic Development of Nigeria," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 6(10), pages 604-613, October.
    2. Grace N Ofoegbu & David O Akwu & Oliver O, 2016. "Empirical Analysis of Effect of Tax Revenue on Economic Development of Nigeria," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 6(10), pages 604-613.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Association; Market women and men; Petty traders and Capital development;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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