| Title: | Modelling The Effect Of Taxation On Economic Performance In Nigeria: The Autoregressive Distributed Lag Model |
| Author(s): | TUANEH Godwin Lebari, & ODUKWO Charles Christian |
| Abstract: | This Study examined the relationship between taxation and economic performance between 2001-2024. The specific objectives were to explore the effects of Petroleum Profits Tax, Company Income Tax, Value Added Tax, Custom Excise Duty on Real Gross Domestic Product in Nigeria. This study adopted quasi-experimental research design and relied on time series data. Pre-estimation diagnostics tests (unit-root and Cointegration tests) were adopted to check for stationarity of the data and the long run relationship to prevent spurious regression results. The method employed for analyzing the time series data was the ARDL regression method. The result showed that a unit increase in customs and excise duties brought about a 0.066719-unit increase in real GDP, a unit increase in company income tax brought about a 0.091230-unit increase in real GDP, a unit increase in petroleum profit tax brought about a -0.018427-unit decrease in real GDP and a unit increase in value added tax brought about a 0.086384-unit increase in real GDP for the period under study. The study concluded that tax revenues were significant in increasing economic performance in Nigeria and recommended that Governments at all levels should ensure taxes are paid by all citizens and companies by putting in place efficient and effective tax administrators in Nigeria, again, government should leverage on fiscal discipline to alleviate corruption and ensure that the funds allocated to key sectors of the economy are properly utilize to improve production and output in Nigeria. |
| Keywords: | ARDL Company Income Tax, Custom Excise Duty, Petroleum Profits Tax, Real Gross Domestic Product, Tax |
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