Indirect Tax and Economic Development in Nigeria

Authors

  • EMMANUEL KOROLO FEDERAL UNIVERSITY OTUOKE

Abstract

Indirect taxes and economic growth in Nigeria are the subjects of this study. The Human Development Index (HDI) was employed as a measure of economic development in order to specifically assess if indirect taxes, such as Value Added Tax (VAT) and Customs and Excise (CED), influence economic development in Nigeria. The study employed an ex post facto research design with secondary data from the Federal Inland Revenue Service, the Nigerian Customs Service, and the Central Bank of Nigeria Statistical Bulletin for the pertinent years. (2001-2021). In order to investigate the correlation between the variables, ordinary least squares (OLS) regression techniques were applied. This study discovered that while there is a definite positive association between Value Added Tax (VAT) and Nigerian economic progress, the relationship between Customs and Excise Tax (CED) and that development is negative and inconsequential. This study generally concludes that indirect taxes and economic growth in Nigeria are significantly related. The study thus urges political decision-makers to work toward further indirect tax reforms, as these have a significant impact on Nigeria's economic progress.

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Published

2023-08-31

How to Cite

KOROLO, E. (2023). Indirect Tax and Economic Development in Nigeria. The Journal of Accounting and Management, 13(2), 131–140. Retrieved from https://dj.univ-danubius.ro/index.php/JAM/article/view/2299

Issue

Vol. 13 No. 2 (2023): JAM

Section

Case Study

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