The Journal of Accounting and Management, Vol 9, No 2 (2019)

Abstract

Objectives: This study examined the impact of non-oil tax revenue on economic growth in Nigeria. Prior work: few work have covered non oil taxation and the relationship of company income tax (CIT), value added tax (VAT) and custom and excise duties tax (CED) on Real Gross Domestic Product of Nigeria. Approach: The study adopted ex-post facto research design, and data were drawn from the annual reports of Central Bank of Nigeria and Federal Inland Revenue Services publications. Auto Regressive Distributive Lag (ARDL) was employed to analyze the data collected after subjecting the series to unit root test and co-integration test. Result: The result of the study showed that CIT (with coeff of 0.273863 and p-value of 0.0177) had a positive significant relationship with economic growth, while VAT (with coeff of 0.030389 and p-value of 0.8529) and CED (coeff of 0.003951 and p-value of 0.9730) had a positive insignificant relationship with economic growth. Implication: The study recommends that government should focus on increasing CIT revenue through strengthened regulations on tax compliance in order to restrain tax evasion and avoidance.  Value: More attention to channeling of VAT and CED revenue collections to infrastructural developments will bring about economic growth of the country.