Revenue Generation in Nigeria: A Financial Statistical Analysis of Taxation Impact on Sustainable Socioeconomic Infrastructure Development

Kelvin Chijioke Amadi; Alolote Ibim Ibim Amadi

doi:10.37591/rrjost.v12i2.3697

Abstract

Revenue generation is an important government policy for generating finance for the implementation of the budget in Nigeria. The study statistically examined different sources of revenue generation for the government of Nigeria and their impact on socioeconomic infrastructure development. Therefore, time series data were used for the study, from 1987-2020. The time series data utilised, were based on information published by the Central Bank of Nigeria (CBN) statistical bulletin as well as information sourced from other academic publications. The data were analysed using different statistical approaches such as descriptive statistics, trend analysis, correlation matrix, unit root test, co-integration test, autoregressive distributed lag, long and short-run analysis, post-estimation test, and stability test respectively. The financial statistical analysis shows that in the long-run petroleum profit tax has a positive significant impact on per capita income while company income tax and custom excise duty have no positive impact on per capita income in Nigeria. The current year's per capita income and lag 3 customs and excise duty have a positive significant effect on the economic development in Nigeria, while lag 2 petroleum profit tax and current year customs and excise duty have a negative significant effect on the economic development in Nigeria. Based on the result, the paper recommended that the utilization of finance generated from taxes to foster socioeconomic infrastructure should be a topmost priority so that the citizens will have confidence in paying their taxes.

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