ABSTRACT
This study examined the effects of petroleum profit tax on economic growth of Nigeria from 2004 to 2014. Taxation of petroleum profit is a source of revenue to the Nigerian economy in funding her public expenditure, but in Nigeria today the infrastructures, education, and health care services and other amenities are not showing the effective use of tax contributed by oil companies in the upstream sector. The petroleum profit tax structure, in Nigeria, has been characterized with tax evasion, tax avoidance, corruption and poor tax administration filled with loopholes. Hence, the objectives of this study are to investigate the effect of petroleum profit tax on the Economic growth of Nigeria and to determine the effect of petroleum profit tax on pe~ capital income in Nigeria. Two hypotheses were formulated and tested in the study. Secondary data were sourced from Central Bank of Nigeria Statistical Bulletin, covering a period of 11 years (2004-2014). The study adopted the ex-post facto research design. The ordinary least square simple regression analysis was used to test the two hypotheses formulated for the study. Descriptive statistics was also used to complement the result. From the result of analysis, it was revealed that petroleum profit tax (PPT) has a positive and significant impact on the Economic growth of Nigeria. The study equally revealed that petroleum profit tax has a positive and significant impact on the per capital income in Nigeria. This study recommends that the government should invest generated tax revenue in capital projects like construction of roads, providing constant power supply, maintaining and building more refineries, etc. so as to provide the enabling environment to foster stability and economic growth in the country. Also, the government should ensure that income derived from Petroleum Profit Tax (PPT) is appropriately and judiciously utilized and that there should be tax reform to address the issue of tax evasion and avoidance.
TABLE OF CONTENT
Declaration II
Certification Ill
Dedication· IV Acknowledgments v
Table of contents VI
List of Tables ix
List of Figures x
Abstract XI
CHAPTER ONE: INTRODUCTION
1.1 Background to the Study -
1.2 Statement of the Problem - 6
1.3 Objectives of the Study .:
1.4 Research Questions - 9
1.5 Research Hypotheses - 9
J .6 Scope ofthe Study -
1.7 Limitations of the Study - - -.
1.8 Significance of the Study -
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1 Conceptual Framework-- 12
2.1.1 ConceptofTax - 12
2.1.2 History of Taxation in Nigeria - 15
2.1.3 Classification of Taxation - - 18
2.1.4 Tax Authorities in Nigeria 19
2.1.5 Challenges of Tax Administration in Nigeria - 22
2.1.6 Petroleum Profits Tax (PPT) and its Administration in Niger_ia - - 26
2.1.7 Gross Domestic Product (GDP)- ·
2.2 Theoretical Review
2.3 Empirical Framework
CHAPTER THE.EE: RESEARCH METHODOLOGY
3.1 Research Design 35
3.2 Area of Study - -
3.3 Source of Data Collection
3.4 Method of Data Analysis
3.5 Model Specification·_
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS
4.1 Data Presentation - 39
4.1.1 Descriptive Statistics of all the Vanables
4.1.2 Trend Analysis of the variable -
4.2 Data Analysis
4.3 Test of Hypotheses
4.4 Discussion of Findings
CHAPTER FIVE: SUMMARY CONCLUSION AND RECOMMENDATION
5 .1 Summary of Findings -;
5.2 Conclusion 48
5 .3 Recommendations- 49
REFERENCES
APPENDIX
