TAX REVENUE AND SUSTAINABLE INFRASTRUCTURAL DEVELOPMENT IN NIGERIA (2012 – 2022)
Keywords:
Infrastructural development, company income tax, petroleum income tax, capital gain tax, gross fixed capitalAbstract
Government have a mandate to provide goods
and service to their citizenry. Inadequate
provision of infrastructure has always been a
challenge for successive governments especially
with declining tax revenue especially with the oil
dependent economy. This study seeks to unveil the
effect of taxes on infrastructural development in
Nigeria. An ex-post facto design was adopted and
data was obtained from the Central Bank of
Nigeria (CBN), and the Federal Inland Revenue
Services (FIRS) spanning the period of 2010 to
- Using Ordinary Least Square analytical
technique combined with Granger Causality
findings they revealed that taxes have a positive
and insignificant effect on infrastructural
development proxied by gross fixed capital
formation. Moreover, the Granger causality
reports a uni-directional causality running from
capital gains tax to company income tax. The
study concluded that tax collections by the
government facilitate the accumulation of
infrastructure. However, the magnitude remains
insignificant in the short run.
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