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Tax Reforms as Key Fiscal Policy Strategies for Economic Development: Nigeria in Perspective

Osirim, Monday PhD, FCA, Chukwu, Ogwo PhD, Nwineewii, Deebii, Azuike, Ngozi PhD

Abstract

The study investigated the effect of tax reforms as key fiscal policy tools for economic development of Nigeria over the period ranging from year 2000 to 2024. The study adopted the ex-post facto research design technique which was considered very suitable for this study given that the data is time series in nature sourced from secodary means. Human development index and gross domestic product were adopted as proxies for economic development while the predictor variables for tax reforms are company income tax and value added tax. Based on findings, the study concludes that tax revenue has a selective and mix effect on economic development in Nigeria. Value added tax indicated a positive and significant effect on human development index but an insignificant relationship with GDP. On the other hand, company income tax indicated a negative and insignificant effect on both GDP and HDI. The above stated findings necessitated the recommendations that there is need to closely re-evaluate company’s income tax policy and administration in Nigeria in terms of leakages, weak enforcements, tax evasion and other factors. Nigeria government should also simplify corporate tax processes, block known loopholes, and eliminate every form of arbitrary tax waivers.

Keywords

tax reformsfiscal policyeconomic developmentstrategiesGDPHDI

References

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