Effect of Value Added Tax (VAT) and Government Expenditure in Nigeria: 1994-2025

Dajen Daniel

doi:10.56201/wjfir.v10.no3.2026.pg131.148

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Effect of Value Added Tax (VAT) and Government Expenditure in Nigeria: 1994-2025

Dajen Daniel

Abstract

This study examined the effect of value added tax on government expenditure in Nigeria for a period of thirty-three (33) years spanning from 1994 to 2025. The study employed secondary sources of data. The secondary data are time series data sourced mainly from Central Bank of Nigeria publications and other sources covering 1994 to 2025.Simple regression analysis was used to analyse the secondary data which were also used to test the study hypotheses. The study found out that there is a significant relationship between VAT and government expenditure and therefore concluded that VAT constitutes a significant part of the fund meant for developmental purpose. The study recommended that Government, policy makers should concentrate efforts at ensuring that more VAT is generated. Policies that will endear the states to industrial investment should be implemented. People need to be economically empowered to bolster their consumption capacity and thereby enhance sustainable revenue generation that, at the long run, will help to meet up with government expenditure.

References

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Effect of Value Added Tax (VAT) and Government Expenditure in Nigeria: 1994-2025

Abstract

References

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