Tax Revenue Mobilization and Infrastructural Development in Nigeria
Keywords:
Taxation
Abstract
This study sought to examine the relationship between Tax Revenue Mobilization and Infrastructural Development in Nigeria. Specifically, the study investigated the impact of Petroleum Profit, Company Income Tax, Value Added Tax and Capital gain tax revenue on Infrastructural Development in Nigeria. The study adopted ex-post factor research design, and data was gathered from the Federal Inland Revenue Service Statistical Bulletin (2002-2022) and CBN Statistical bulletin (2022). In order to evaluate the analysis, four hypotheses were formulated and tested using Ordinary Least Squares (OLS) regression technique. The findings revealed that the Petroleum Profit Tax Revenue has no significant effect on Infrastructural Development in Nigeria. It was also revealed that Company Income Tax Revenue has significant effect on Infrastructural Development in Nigeria. The findings as well revealed that Value Added Tax Revenue has significant effect on Infrastructural Development in Nigeria; and also, showed that Capital Gain Tax Revenue has on Infrastructural Development in Nigeria. The study thus concluded that corporate income taxes revenue and value added tax revenue have significant effect on infrastructural development while petroleum profit tax and capital gain tax were otherwise. These implied that tax revenue measures such as (companies’ income tax and value added tax significantly affect infrastructure development in Nigeria. It was recommended that government should put in place adequate measure to ensure that revenue generated from petroleum profits tax and capital gains tax are effectively utilized to develop and grow the economy through proper infrastructural development.
References
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Carfora, A., Pansini, R. V., & Pisani, S. (2018). Spatial dynamic modelling of tax gap: The case of Italy. European Spatial Research, 25(1), 12-35.
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Chukwuebuka, B. A., & Jisike, J. O. (2020). Infrastructure development and industrial sector productivity in Sub-Saharan Africa. Journal of Economics and Development, 22(1), 91-109.
Dada, R. A., Adebayo, I. A., & Adeduro, O. A. (2017). An Assessment of Revenue Mobilization in Nigeria Local Government: Problems and Prospects. Archives of Business Research, 5(9), 119-127.
Danbeki, A., Baninla, F. and Bassey, E. U. (2020). Internally Generated Revenue And Infrastructural Development In Taraba State: A Time Series Analysis. International Journal of Advanced Academic Research 6 (12), 18-26.
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Donaldson, T., & Dunfee, T.W. (1999). Ties that Bind. Harvard School of Business Press, Boston, M.A.
Ejemai, M. O., Akintoye, I. R., & Adegbie, F. (2020). Companies’ income, customs and excise duty tax gap and infrastructural development in Nigeria, International Journal of Development Research, 10, (30), 34891-34901.
Emmanuel, O. E., & Ibrahim, A. S. (2020). Tax revenue and Nigeria economic growth. European Journal of Social Sciences, 3(2), 23-34.
Ezu, G. K. and Okoh, J.I. (2016). Effect of tax revenue on selected macro-economic variables in Nigeria (2000-2015). A paper presented at the 2016 International Conference of the Management Sciences of the Nnamdi Azikiwe University, Awka, Anambra State, Nigeria held 8-10th Nov.
Gelb, B. A. (1981). The Crude Oil Windfall Profit Tax Act: Context and Content. U.S. Depository Material Government Documents Collection Northern Kentucky University Library.
Golit, P. D. (2008): Appraising Nigeria ‘s Tax Effort: A Comparative Econometric Analysis. Economic and Financial Review, Central Bank of Nigeria. 46 (1), 69-103.
Hamid, K. T. (2008). SWOT Analysis on Sources of revenue at State Government Level. Tahir Guest Palace, Kano., s.n.
Hammayo, A., Shittu, I. and Abdullahi, A. A. (2020). Impact of State Government Revenues on Infrastructural Development in Bauchi State Nigeria. Nile Journal of Business and Economics, 1(6), 47-58.
Harris, M., and A. Raviv. 1996. The capital budgeting process: Incentives and information. The Journal of Finance 51(4); 1139–1174.
Okoror, J.A., Mainomah, M.A., & Uwaleke, U.J. (2019). Companies income tax and infrastructural development in Nigeria. Accounting and Taxation Review, 3(3), 24-43
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Adegbie, F. F., & Daniel-Adebayo, O. (2017). Taxation and development of capital project in Nigeria. Journal of Taxation and Economic Development, 16(2), 92-115.
Adeosun, K. (2017). Nigeria`s tax to gross domestic product ratio among the lowest in the world. Thisday Newspapers, 5.
Agbo, E. I & Onuegbu, C. E (2022). Impact of Tax Revenue on Nigerian Economic Growth (1994 – 2020). European Review in Accounting and Finance, 6(1), 23-38.
Agenor, P. (2006). A Theory of Infrastructure-led Development. Retrieved from: https://www.ses.man.ac.uk/cgbcr/discussi.htm
Aguolu, O. (2010). Taxation and Tax Management in Nigeria. 3rd Edition, Enugu Meridian Association.
AIAE (2006). Budget and Public Expenditure Across Nigerian States” BECANS Working Paper 3, (eds.) Eboh, E., Amakom, U. and Oduh, M., Publication of African Institute for Applied Economist, Enugu.
Ajike, E. O., Ariguzo, A. V., Akinyosoye O., Nwankwere I. A. & Oyedeji, F. (2020). Internally Generated Revenue and Transport Infrastructural Development in Lagos State Nigeria between 1998 to 2018. Journal of Critical Reviews, 8(01), 987-995.
Ajiteru, W.O., Adaranijo, L.O., & Bakare, L.A. (2018). Tax revenue and infrastructural development in Osun State. International Journal of Innovative Finance and Economic Research, 6(2), 50-61.
Akinrotimi, I. O. and Lateefat, O. Y. (2017). Analysis of internally generated revenue and infrastructural development of public universities in Ondo State, Nigeria. Global Journal of Commerce & Management Perspective, 6(1), 24-33.
Akpotoboro, P. (2009). Doing Business in the oil and Gas sector in Nigeria. Uk Trade and investment conference presentation paper.
Alawi, S.A.H., Wadi, R.A., & Kukreja, G. (2018). The determinants of audit expectation gap: An empirical study from kingdom of Bahrain. Accounting and Finance Research, 7(3), 54.
Amadasu, D. E. (2001). Capital Market Operations: The Nigerian Experience. Certified National Accountant, Journal of ANAN, Lagos, 9(3); 63-70.
Amadi, K. C., & Alolote, I. A. (2020). Government expenditure on infrastructure as a driver for economic growth in Nigeria. Journal of International Business Research and Marketing, 5(2), 20-26.
Amin, S. B., & Chen, M.& Huang, P. (2018). An empirical investigation of foreign aid and dudisease in Bangladesh. The Journal of Developing Areas, 52(8), 169-182.
Amos, O. A., Uniamikogbo, E., & Aigienohuwa, O. O. (2017.) Tax revenue and economic growth. Journal of Economics, Business and Management, 4(10), 696-702.
Anyaduba, J. O., & Aronmwan, E. J. (2015). Taxes and infrastructural development in Nigeria. Nigerian Journal of Banking, Finance and Entrepreneurship Management, 1(1), 14-28.
Anyaduba, J. O., & Aronmwan, E. J., (2015). Taxes and infrastructural development in Nigeria. Nigerian Journal of Banking, Finance and Entrepreneurship Management. 1, 14 - 28
Anyanwu, J.C. (1993); Monetary Economics. In J.C. Anyanwu (edu), Theory, Policy and Institutions. Onitsha, Nigeria: Hybrid Publishers.
Asaolu, T.O., Olabisi, J., Akinbode, S.O., & Alebiosu, O. N. (2018). Tax revenue and economic growth in Nigeria. Scholedge International Journal of Management and Development, 5(7), 72-85.
Ashiedu, I. P., Okafor, T. G., Amahalu, N.N. and Obi, J. C. (2022). Effect of tax revenue on national development of Nigeria. International Journal of Advanced Academic Research, 8(1), 50-64.
Attali, J. G, G. Chambsa, J. and Combes, L. (2008). Corruption et Mobilization des recetes Publiques: UneAnalyse Économétrique, Recherche Economique de Louvain.
Ayeni, A.P., Ibrahim, J. and Adeyemi, A.O. (2017) Tax Revenue and Nigerian Economic Growth. European Journal of Accounting, Auditing and Finance Research, 5, 75-85.
Ayeni, O. D. and Afolabi, O. J. (2009). Tax Revenue, Infrastructural Development and Economic Growth In Nigeria. Munich Personal RePEc Archive, Paper No. 99464, 1-16.
Ayeni, O.O., & Afolabi, O. J. (2020). Tax revenue, infrastructural development and economic growth in Nigeria. International Journal of Management and Social Science Research, 7(7), 1-12.
Ayodele, T. R., Alao, M. A., Ogunjuyigbe, A. S. O., & Munda, J. L. (2019). Electricity generation prospective of hydrogen derived from biogas using food waste in south-western Nigeria. Biomass and Bioenergy, 127, 105291.
Babatunde, M.A. (2015). Oil price shocks and exchange rate in Nigeria. International Journal of Energy Sector Management, 9(1), 2-19.
Bhartia, H. L. (2009). Public Finance. 14th Edn, New Delhi, Vikas Publishing House PVT Ltd.
Brammer, S., and Pavelin, S. (2006). Voluntary environmental disclosures by large UK companies Journal of Business Finance & Accounting 33 (7 & 8); 1168–1188.
Carfora, A., Pansini, R. V., & Pisani, S. (2018). Spatial dynamic modelling of tax gap: The case of Italy. European Spatial Research, 25(1), 12-35.
Central Bank of Nigeria (1995). Monetary policy, Conduct of fiscal policy. Retrieved from
Chukwuebuka, B. A., & Jisike, J. O. (2020). Infrastructure development and industrial sector productivity in Sub-Saharan Africa. Journal of Economics and Development, 22(1), 91-109.
Dada, R. A., Adebayo, I. A., & Adeduro, O. A. (2017). An Assessment of Revenue Mobilization in Nigeria Local Government: Problems and Prospects. Archives of Business Research, 5(9), 119-127.
Danbeki, A., Baninla, F. and Bassey, E. U. (2020). Internally Generated Revenue And Infrastructural Development In Taraba State: A Time Series Analysis. International Journal of Advanced Academic Research 6 (12), 18-26.
Daniel-Adebayo, O., Akintoye, I. R., Adegbie, F. F., & Ajayi-Owoeye, A. O., (2022). Tax revenue and infrastructure expectation gap in selected sub-Saharan African Countries. International Journal of Accounting Research (I JAR). 7 (1), 75-86
Donaldson, T. (1983) Constructing a social contract for business. In T. Donaldson & P. Werhane (Eds.), Ethical Issues in Business. New Jersey: Prentice –Hall, Englewood.
Donaldson, T., & Dunfee, T.W. (1999). Ties that Bind. Harvard School of Business Press, Boston, M.A.
Ejemai, M. O., Akintoye, I. R., & Adegbie, F. (2020). Companies’ income, customs and excise duty tax gap and infrastructural development in Nigeria, International Journal of Development Research, 10, (30), 34891-34901.
Emmanuel, O. E., & Ibrahim, A. S. (2020). Tax revenue and Nigeria economic growth. European Journal of Social Sciences, 3(2), 23-34.
Ezu, G. K. and Okoh, J.I. (2016). Effect of tax revenue on selected macro-economic variables in Nigeria (2000-2015). A paper presented at the 2016 International Conference of the Management Sciences of the Nnamdi Azikiwe University, Awka, Anambra State, Nigeria held 8-10th Nov.
Gelb, B. A. (1981). The Crude Oil Windfall Profit Tax Act: Context and Content. U.S. Depository Material Government Documents Collection Northern Kentucky University Library.
Golit, P. D. (2008): Appraising Nigeria ‘s Tax Effort: A Comparative Econometric Analysis. Economic and Financial Review, Central Bank of Nigeria. 46 (1), 69-103.
Hamid, K. T. (2008). SWOT Analysis on Sources of revenue at State Government Level. Tahir Guest Palace, Kano., s.n.
Hammayo, A., Shittu, I. and Abdullahi, A. A. (2020). Impact of State Government Revenues on Infrastructural Development in Bauchi State Nigeria. Nile Journal of Business and Economics, 1(6), 47-58.
Harris, M., and A. Raviv. 1996. The capital budgeting process: Incentives and information. The Journal of Finance 51(4); 1139–1174.
Okoror, J.A., Mainomah, M.A., & Uwaleke, U.J. (2019). Companies income tax and infrastructural development in Nigeria. Accounting and Taxation Review, 3(3), 24-43
Oladapo M. A. & Olalekan A. (2023). Impact of Tax Revenue and Infrastructural Development on Economic Growth in Nigeria. Journal of Economics, Management and Trade. 29(3), Page 1-15
United Nations (2010). We can end poverty by 2015: Millennium Development Goals Fact Sheet. High-level plenary meeting of the General Assembly, 20-22 September. Available from: www.un.org/millennium/.../MDG_ FS_7_EN.pdf.
Published
2024-11-01
How to Cite
Aisien, E. P., Otusanya, O. J., & Ala-Peters, D. (2024). Tax Revenue Mobilization and Infrastructural Development in Nigeria. Global Journal of Accounting, 10(1), 62-80. Retrieved from http://gja.unilag.edu.ng/article/view/2274
Section
Articles
