Effect of Tax Revenues on the Economic Development of Nigeria

Abstract

The main objective of this study is to examine empirically the effect of tax revenues on the economic development of Nigeria, judging its impact on the relationship between tax revenue and economic growth. Data was sourced from CBN statistical bulletin and the World Bank data. A multiple regression anal is was used for the analysis of the data which would consist of a fusion between the dimensions of time (time series). A quantitative research approach was used to analyze the regression results. Consequently, the findings from the study showed that custom and excise duties, companies income tax, petroleum profit tax, and value-added tax have a significant combined effect on gross domestics product in Nigeria. Similarly, results show that custom and excise duties (B = . 0.117, t=0.031948, p>0.05) and companies income tax (B = 0.539657, t = 2.2215895, p>0.05), petroleum profit tax (B = 0.103431, t = 2.370469, p>0.05), positive effect on GDP and have insignificant effect on gross domestics product, whereas cc (B=-0.452577, t=-0.836510, p>0.05) negative effect on gross domestics product but have insignificant effect on gross domestics product in Nigeria. It was concluded that tax revenue has an effect on the economic development in Nigeria. It was recommended that the government established a long-term goal through investment in infrastructural development.