This study analyzes the impact of tax income on Nigeria’s economic growth from 2011 to 2023. An ex-post-facto research design was utilized, employing secondary data sourced from the Federal Inland Revenue Service publications, with Nigeria as the case study. Data analysis was performed using descriptive statistics and basic regression methods. The dependent variable of the study was gross domestic product (GDP), indicative of economic growth, whereas the independent variables included corporate income tax, value-added tax, petroleum profit tax, capital gains tax, education tax, and fuel income. The results indicated that corporate income tax exerts a positive and statistically significant effect on GDP. Likewise, the value-added tax and petroleum profit tax exhibited substantial and beneficial impacts on GDP. Nonetheless, despite its favorable correlation, the capital gains tax was statistically insignificant. The analysis illustrates that tax revenue has a positive and significant impact on Nigeria’s economic growth during the study period. The government is asked to streamline tax procedures and improve digital filing systems to alleviate the administrative burden on businesses. Additionally, measures must be enacted to improve transparency, bolster accountability, elevate taxpayer education, and evaluate modifications to the capital gains tax framework to foster enhanced compliance.
Okwajie et al. (Wed,) studied this question.