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Tax Policy Reforms in Nigeria

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  • Odusola, Ayodele

Abstract

Nigeria is governed by a federal system, hence its fiscal operations also adhere to the same principle, a fact which has serious implications on how the tax system is managed. The country’s tax system is lopsided, and dominated by oil revenue. It is also characterized by unnecessarily complex, distortionary and largely inequitable taxation laws that have limited application in the informal sector that dominates the economy. The primary objective of this paper is to prepare a case study on tax policy reforms in Nigeria, with the specific objectives of examining the main tax reforms in the country; highlighting tax revenue profile and composition; analysing possible distributional impacts on the poor; discussing major problems that could prevent effective tax implementation in the country; and offering suggestions for reforms.

Suggested Citation

  • Odusola, Ayodele, 2006. "Tax Policy Reforms in Nigeria," UNDP Africa Economists Working Papers 307339, United Nations Development Programme (UNDP).
    • Handle: RePEc:ags:undpae:307339
    DOI: 10.22004/ag.econ.307339
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    1. Younger, Stephen D, et al, 1999. "Tax Incidence in Madagascar: An Analysis Using Household Data," The World Bank Economic Review, World Bank, vol. 13(2), pages 303-331, May.
    2. Mr. Thomas Baunsgaard, 2003. "Fiscal Policy in Nigeria: Any Role for Rules?," IMF Working Papers 2003/155, International Monetary Fund.
    3. Ariyo, A., 1997. "Productivity of the Nigerian Tax System: 1970-1990," Papers 67, African Economic Research Consortium.
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    1. repec:eur:ejesjr:375 is not listed on IDEAS
    2. Innocent Nwaorgu & Wilson Herbert & Francis Onyilo, 2016. "A Longitudinal Assessment of Tax Reforms and National Income in Nigeria: 1971-2014," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(8), pages 1-43, August.
    3. Ibrahim, Umar Bambale & Abubakar, Isah Funtua, 2020. "Welfare Implication of Tax Rates Increase in a Recessionary Economy," MPRA Paper 111132, University Library of Munich, Germany, revised 13 Dec 2021.
    4. Julia Ngozi Chukwuma, 2023. "Implementing Health Policy in Nigeria: The Basic Health Care Provision Fund as a Catalyst for Achieving Universal Health Coverage?," Development and Change, International Institute of Social Studies, vol. 54(6), pages 1480-1503, November.
    5. Abdullahi D. Ahmed, 2012. "Debt Burden, Military Spending And Growth In Sub-Saharan Africa: A Dynamic Panel Data Analysis," Defence and Peace Economics, Taylor & Francis Journals, vol. 23(5), pages 485-506, October.
    6. UNDP Regional Bureau for Africa & Ayodele Odusola, "undated". "Fiscal Policy, Redistribution and Inequality in Africa," UNDP Africa Policy Notes 2017-08, United Nations Development Programme, Regional Bureau for Africa.
    7. Odusola, Ayodele, 2017. "Fiscal Policy, Redistribution and Inequality in Africa," UNDP Africa Reports 267032, United Nations Development Programme (UNDP).
    8. Folashade O. Akinyemi & Oluwabunmi O. Adejumo, 2018. "Government policies and entrepreneurship phases in emerging economies: Nigeria and South Africa," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 8(1), pages 1-18, December.
    9. ADEYEYE, Gbadegesin, 2019. "http://anale.spiruharet.ro/index.php/economics/article/view/1914/pdf," Annals of Spiru Haret University, Economic Series, Universitatea Spiru Haret, vol. 19(1), pages 31-63.
    10. Olufemi Muibi SAIBU, 2015. "Optimal tax rate and economic growth. Evidence from Nigeria and South Africa," EuroEconomica, Danubius University of Galati, issue 1(34), pages 41-50, May.
    11. Adegbite, Tajudeen Adejare, 2017. "Personal Income Tax and Government Revenue: Evidence from Oyo State," International Journal of Social and Administrative Sciences, Asian Economic and Social Society, vol. 2(2), pages 45-51, December.
    12. 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.
    13. Etim Osim Etim & Nsima Johnson Umoffon & David Johnny Ekanem, 2020. "Does Taxation Drive Economic Development in Nigeria?," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 7(7), pages 129-137, July.
    14. Opasina, Olaolu & Owuru, Joel & Farayibi, Adesoji, 2016. "Examining the Fiscal Policy-Poverty Reduction Nexus in Nigeria," MPRA Paper 90950, University Library of Munich, Germany, revised 27 Dec 2018.
    15. Owuru, Joel & FARAYIBI, Adesoji, 2016. "Examining the Fiscal Policy-Poverty Reduction Nexus in Nigeria," MPRA Paper 74184, University Library of Munich, Germany.
    16. repec:eur:ejesjr:374 is not listed on IDEAS
    17. Odusola, Ayodele, 2017. "Fiscal Space, Poverty and Inequality in Africa," UNDP Africa Economists Working Papers 268726, United Nations Development Programme (UNDP).
    18. 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.
    19. Uzamere Jim Onaiwu & Ebhodaghe Lennards Arekhandia, 2021. "An Assessment of PAYE System of Taxation in Nigeria (TETFUND Sponsored)," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 5(11), pages 760-768, November.
    20. FASUA Henry Kehinde & MAYAKI Adeolu Thompson & ADEBAYO Sunday Fatoba, 2023. "Taxation Policy and Public Economic Growth and Development in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(4), pages 463-473, April.
    21. Ikechukwu D Nwaka & Kalu E Uma & Gulcay Tuna, 2015. "Trade openness and unemployment: Empirical evidence for Nigeria," The Economic and Labour Relations Review, , vol. 26(1), pages 117-136, March.
    22. repec:rac:ecchap:2017-08 is not listed on IDEAS

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