Effect of Income Tax and Value Added Tax on the Nigeria Economy

Remi Noah Okeagbo; Amaewhule Nada Adandah

doi:10.56201/ijefm.v11.no2.2026.pg38.48

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Effect of Income Tax and Value Added Tax on the Nigeria Economy

Remi Noah Okeagbo, Amaewhule Nada Adandah

Abstract

The study examined effect of income tax and value added tax on the Nigeria Economy. This study adopted an ex-facto of time series data obtained from the annual reports and financial statements of money deposit banks. It used the time series secondary data spanning through the period of 1994-2024. The major sources of this data was Central Bank of Nigeria statistical bulletin. The source of data are annual reports of Nigeria Statistical Bulletin and from CBN. The source of data is secondary data which provided was published annual reports and financial statement and NBS and CBN’s statistical bulletin. The multiple regression analysis was used to determine whether the federal government tax (income tax, value added tax) effects economic growth in Nigeria, (proxied) by Gross Domestic Product during the period under review. The findings of the study showed that income tax and value added tax have significant impact on the Nigerian economy. The study therefore concluded that It that Value Added Tax and Income Tax have significant relationship in Nigerian economy within the period revealed. The study postulates that tax financing in Nigeria had been badly managed, leading to poor GDP, and Economic Growth Rate Value Added Tax and Income Tax are veritable tax measures or government earning to grow the economy through the provision of social amenities or other economic development ventures in Nigeria. It recommended, among others that Value Added Tax accruing to government should be transparently utilized in growing the real economy such as agriculture and manufacturing.

Keywords

Income TaxValue Added TaxEconomyGross Domestic ProductNigeria

References

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Effect of Income Tax and Value Added Tax on the Nigeria Economy

Abstract

Keywords

References

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