The Journal of Accounting and Management, Vol 9, No 3 (2019)

Influence of Value Added Tax on Economic Development (The Nigerian Perspective)

Oluseyi Emmanuel Sowole, Mujeeb Opeyemi Adekoyejo


Synopsis of tax administration system in Nigeria fascinates divergent views, especially in relation to VAT effectiveness in enhancing economic development. There are concerns in some quarters that VAT administration in Nigeria is plagued by structural defects on multiple fronts. This paper therefore investigated the effectiveness of VAT system in Nigeria to evaluate its influence on economic development. Meta-analytic result from research on VAT administration in Nigeria assert the importance of effective tax administration system to assist Nigerian government diversify its revenue stream. Finding the nexus between effective VAT administration and economic development is the crux of this paper which adopted two constructs to investigate the subject matter (FCR and GDP). The justification stem from seemingly dearth of nexus in research on the influence of VAT on development and how this tax tool can help government actualize its departure from single revenue stream (crude oil). Simple linear regression was employed to analyze data which shows a positive relationship between VAT, FCR and GDP.


Full Text: PDF


  • There are currently no refbacks.
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.