Effect Of Tax Revenue On Nigeria Economic Growth (2005-2014)

ABSTRACT

This study examines the impact of tax revenues on Nigeria economic growth for aperiodof9 years (2005 to2014). Time series data were applied in Carrying out this research work. Econometric model of data analysis was adopted in the study, the hypotheses on the significance of the relationship between tax revenue and Nigeria economic growth was tested with multiple regression analysis to analyse the data. The findings reveal that petroleum profit tax, company income tax, value added tax and personal income tax have a positive impact on Nigeria 's economic growth while custom excise and duties impacted negatively but overall, a significant relationship between tax revenue and the Nigerian economic growth exists. The utilization of the generated revenue from taxes calls for serious concern, and requires a special attention of policy makers, non-compliance with tax laws on the part of the tax payers is a hindrance and ineffective administration of tax has given enough loop holes for tax evasion, the consequence of which is poor revenue. Therefore the researcher recommends among others that only skilled and professionals and trustworthy hands be responsible for tax administration and the general public should be educated right from the grass root on the importance of taxes to the entire nation: