Tax Revenue’s Impact On Nigeria’s Economic Expansion

Issue: 1, Volume: 7, Year: 2025

Tax Revenue’s Impact On Nigeria’s Economic Expansion

Date of Publication : 15, Jan, 2025

Date Of Acceptance : 5 January 2025

Author: ADENIYI, Sarafadeen Diran,

Co Author: Dr. REGIDOR III Poblete Dioso, Dr. MURTADHO, Alao, ADEDEJI Adeshina Akeem,

Area of research / Subject: Tax Revenue's Impact On Nigeria's Economic Expansion

The study assesses how tax revenue affects Nigeria’s economic expansion. Nigeria, one of the world’s poorest nations, has seen an increase in tax revenue over the years, but this has not resulted in any significant growth or development. The study’s specific goal is to determine how Nigeria’s real gross domestic product is impacted by the petroleum profit tax. The research used an ex post facto design. The Central Bank of Nigeria (CBN) Statistical Bulletin provided secondary data for the study for a number of different years. For this investigation, the Autoregressive Distributive Lag (ARDL) Model and estimate method were used. According to the results of the Philip Peron test, every variable—aside from the real interest rate—was non-stationary because only at the first difference did their Philip Peron test statistic’s absolute value surpass the crucial value. The results of the ARDL bound test showed that the variables had a long-term association. According to the results of the ARDL estimation, the petroleum profit tax has a positive and considerable long-term impact on real gross domestic product. In conclusion, a rise in petroleum profit tax collection has the potential to support Nigeria’s economic expansion. Therefore, the study suggests that in order to sustain Nigeria’s economic progress, the petroleum profit tax be raised and closely watched at all times.

Keywords: Taxation, petroleum profit tax, gross domestic product, economic growth,

Cite this article:

Author(s),  ADENIYI, Sarafadeen Diran, Dr. REGIDOR III Poblete Dioso, Dr. MURTADHO, Alao, ADEDEJI Adeshina Akeem , (2025). “Tax Revenue’s Impact On Nigeria’s Economic Expansion”, Name of the Journal: Euro Afro Studies International Journal, (EASIJ.COM), P, 1 – 22.  DOI: www.doi.org/10.5281/zenodo.14781546 ,  Issue: 1, Vol.: 7, Article: 1, Month: January, Year: 2025. Retrieved from https://www.easij.com/all-issues/

 

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easij.com - 7.1- 1 - 2025 Tax Revenue's Impact On Nigeria's Economic Expansion

Keywords : Taxation, petroleum profit tax, gross domestic product, economic growth,

DOI (Digital Object Identifier) Number: www.doi.org/10.5281/zenodo.14781546

Serial: 1 Download Page: 1 -22