Title: Impact Of Tax Revenues On Economic Development Of Nigeria
Authors: EDIAGBORUME, Edward Onayomake email: everyrume@gmail.com
Volume: 9
Issue: 7
Pages: 232-241
Publication Date: 2025/07/28
Abstract:
This study investigates the impact of tax revenues on the economic development of Nigeria from 1990 to 2021. Using an ex-post facto research design, data from multiple authoritative sources were analyzed through descriptive, correlation, and regression techniques, with diagnostic effects tests ensuring model robustness. Findings reveal that CIT has a weak positive but statistically insignificant effect on economic development, while CGT, CED, and PPT shows negative associations, with CGT and PPT showing statistically significant. The study highlights issues such as tax evasion, inefficient tax administration, and structural challenges that limit the positive contributions of tax revenue to Nigeria's development. Recommendations include strengthening tax compliance mechanisms, reducing the Capital Gains Tax rate, modernizing customs duty collection, and promoting local crude oil refining to maximize the developmental benefits of tax revenues. This research contributes to policy discussions aimed at optimizing tax revenue strategies to foster sustainable economic growth in Nigeria