TAX REVENUE AND SUSTAINABLE INFRASTRUCTURAL DEVELOPMENT IN NIGERIA (2012 – 2022)

Authors

  • Faith Umashime Sunny-Igwe
  • Sunny R. Igwe

Keywords:

Infrastructural development, company income tax, petroleum income tax, capital gain tax, gross fixed capital

Abstract

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

  1. 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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Published

15-12-2024

How to Cite

Sunny-Igwe, F. U., & Igwe, S. R. (2024). TAX REVENUE AND SUSTAINABLE INFRASTRUCTURAL DEVELOPMENT IN NIGERIA (2012 – 2022). Nigerian Academy of Management Journal, 19(1), 122–134. Retrieved from https://namj.tamn-ng.org/index.php/home/article/view/375