EMPIRICAL ANALYSIS OF IMPACT OF NON-OIL TAX REVENUE ON ECONOMIC GROWTH IN NIGERIA
William Ifezue Onyekwelu ,E.D Anzaku, PhD and H. A. Eggon, PhD
Volume 4 Issue 1
Abstract
This study examined the impact of non-oil tax revenue on economic growth in Nigeria, using four variables of Personal Income Tax Revenue (PITR), Company Income Tax Revenue (CITR), Value Added Tax Revenue (VATR) and Custom and Excise Duties tax Revenue (CEDR) as proxied by Real Gross Domestic Product of Nigeria. In this study, ex-post facto research design, was adopted in obtaining, analaysing and interpretation of data drawn from Central Bank of Nigeria (CBN), National Bureau of Statistics (NBS) and Federal Inland Revenue Services (FIRS), Federal Ministry of Finance (FMF) and National Planning publications (NPP). Auto Regressive Distributive Lag (ARDL) Model was employed to analyse the data collected after subjecting the series to Pre-Estimation Tests such as: descriptive test, unit root test, co-integration tests:(Parsimonious Error Correction Term, ARDL Co-integration short-run and long-run tests), and Post-Estimation Tests such as: Stability test, Ramsey RESET test, Herteroskedasticity test, and Normal test. The result of the study showed that PITR with coeff of -0.892349, and PV of 0.0004, had a negative and statistically significance. CITR with coef of 341.9861 and PV of 0.0002 had a positive significant relationship with economic growth, VATR revealed coeff of 0.132950 and PV of 0.0001, a positive significant relationship with economic growth and CEDR exhibited coeff of -3.840593 and p-value of 0.6265, a negative insignificant relationship with economic growth. The study recommends that government should focus on reducing to the bearest minimum the high inflation, high exchange rate, epileptic power supply and insecurity affecting and depleting PITR, CITR and VATR revenues, and also to strengthened regulations on tax compliance in order to restrain tax evasion and avoidance. More attention to (CEDR)by increasing Custom personnel welfare and equipments which will yield more revenues and bring about economic growth of the country. Keywords: Nigeria, Gross Domestic Product; Economic Growth, Non-oil Tax Revenue.
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