Effect of Tax Revenue on National Development of Nigeria


Ashiedu, Isioma Precious1; Okafor, Tochukwu Gloria1; Amahalu, Nestor Ndubuisi1; Obi, Juliet Chinyere1

1 Department of Accountancy, Nnamdi Azikiwe University Awka, Anambra State, Nigeria


This study determined the effect of Tax Revenue on National Development of Nigeria for twenty-two years period covering from 1999-2020. Personal Income Tax, Company Income Tax and Value Added Tax were used to proxy Tax Revenue, while the dependent variable; National Development was measured by Per Capita Income. In line with the objectives of the study, three hypotheses were formulated.  Ex-Post facto research design was employed.  Secondary data were obtained from the publications of Federal Inland Revenue Service (FIRS) bulletin, Central Bank of Nigeria (CBN), National Bureau of Statistics (NBS) and the World Bank statistical bulletins and were analyzed using E-Views 10.0 statistical software. The study employed inferential statistics using Pearson correlation, Augmented Dickey-Fuller (ADF) test, Ordinary Least Square regression analysis, Granger Causality test, Johansen Co-integration test and Error Correction Model. Findings from the empirical analysis showed that there is a significant negative relationship between Personal Income Tax, Company Income Tax, Value Added Tax and Per Capita Income at 5% level of significance. It was recommended inter alia that there should be continuous orientation and enlightenment programmes for company income taxpayers and tax officials. Government should be prudent and transparent in spending taxes collected so as to gain taxpayers confidence.

Keywords: Personal Income Tax, Company Income Tax and Value Added Tax, Per Capita Income


Ashiedu, I.P; Okafor, T.G; Amahalu, N.N & Obi, J.C (2022). Effect of Tax Revenue on National Development of Nigeria. International Journal of Advanced Academic Research, 8(1), pp50-64. Available online at: https://www.ijaar.org/articles/v8n1/ijaar- v8n1-Jan22-p8180.pdf.

View Previous Issues | ArchiveJournal Home Page

Language translation



Call for papers

Research Articles written in English Language are invited from interested researchers in the academic community and other establishments for publication. Authors who wish to submit manuscripts should ensure that the manuscripts have not been submitted elsewhere neither is it under consideration in another journal. The articles should be the original work of the authors. High quality theoretical and empirical original research papers, case studies, review papers, literature reviews, book reviews, conceptual framework, analytical and simulation models, technical note from researchers, academicians, professional, practitioners and students from all over the world are welcomed.


IJAAR (DOI: 10.46654) is a voting member of CROSSREF.

Authors who haven’t submitted their addresses for hard copies collection are advised to do so by visiting: