Impact of Tax Reforms on Economic Development in Nigeria

Sallau Adamu Mijinyawa; Mahmoud Ibrahim; Shamsudeen Ladan Shagari

doi:10.70382/ajbdmr.v7i7.007

Authors

Sallau Adamu Mijinyawa Department of Accounting, Faculty of Management Sciences, Sa’adu Zungur University, Bauchi State Nigeria Author
Prof. Mahmoud Ibrahim Department of Accounting, Faculty of Management Sciences, Sa’adu Zungur University, Bauchi State Nigeria Author
Dr. Shamsudeen Ladan Shagari Department of Accounting, Faculty of Management Sciences, Sa’adu Zungur University, Bauchi State Nigeria Author

Abstract

This study investigated the impact of tax reforms on economic development in Nigeria using time series data from 2013 to 2022. Ex-Post facto research design was adopted. The time series data were obtained from the National Bureau of Statistics, Central Bank of Nigeria (CBN) statistical Bulleting and Federal Inland Revenue Service (FIRS) .In order to determine the impact of tax reforms on economic development in Nigeria, tax reforms were measured by reform in Petroleum Profit Tax (PPT), reform in Company Income Tax (CIT), reform in Value Added Tax (VAT) and custom and excise duty Tax (CED). The regression result showed that reforms in Value Added Tax (VAT), has significant negative value while Petroleum Profit Tax (PPT) and Company Income Tax (CIT), have significant positive impact and reform in custom and excise duty Tax (CED). Has insignificant impact on economic development in Nigeria. Based on this, the study concludes that tax reforms have significant impact on economic development in Nigeria.