The Impact of Foreign Direct Investment on Revenue Generation in Nigeria: Mediating on the Role of Company Tax


  • Niyi Oladipo Olaniyan Mr
  • Olubunmi Omotayo Efuntade Afe Babalola University
  • Efuntade Alani Olusegun Federal University
  • Taiwo Cecilia Dada Ekiti State University


Company Income Tax; Foreign Direct Investment; Petroleum Profit Tax; Corporate Tax; Revenue Generation


This study examined foreign direct investment and its impact on revenue generation in Nigeria, with emphases on the role of company income tax as mediating factor. This Study is predicated on the Doctrine of Unbalanced Growth Theory, Solow-Swan growth theory and Romer Growth Model

Secondary data source was explored in presenting the facts of the situation. The secondary data were obtained from relevant literatures, Central Bank of Nigeria Statistical Bulletin and National Bureau of Statistics publications among other. In an attempt to do this, ordinary least square regression technique was employed in which T-test, R-Square, Standard Error Test and Durbin Watson test ADF/PP unit root and co-integration test were used in the data analysis, information concerning foreign direct investment, company income tax, petroleum profit tax and corporate tax  from 1990-2020  were extracted.

The empirical evidence shows that FDI has positive impact on revenue generation in Nigeria. The result of the finding revealed consistence present of co –integration among the variables which is a clear indication that foreign direct investment has a significant and positive relationship with revenue generation with strong emphasize on company income tax as mediating factor.In conclusion, foreign direct investment increase revenue generation which through company income tax generated to boost economic growth in Nigeria. Therefore, in other boost government revenue generation which will promote growth and development in the economy, government should give priority or pay more attention to policies that could promote FDI inflow into the country and use this avenue to generate more tax to enhance infrastructural development

Author Biographies

Olubunmi Omotayo Efuntade, Afe Babalola University

Department of Economics, College of Social and Management Sciences

Efuntade Alani Olusegun, Federal University

Department of Economics

Taiwo Cecilia Dada, Ekiti State University

Department of Accounting ,Faculty of Management Science


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Business Administration and Business Economics