Tax Revenue and Economic Growth in Nigeria

In an economy, some interest groups such as households, firms, public and private sectors often collaborate and participate in the process of economic development. However, the government sector plays a predominant role in achieving the desired changes in the structure of any economy. Indeed, the uniqueness of public sector arises from the fact that, apart from being part of the economy the government sector plays a decisive role in attaining
macroeconomic objectives of stability, growth and development, through a package of economic policy measures and regulatory framework (Sackey & Ejah, 2014). For the Nigerian government to effectively carry out its primary function and other subsidiary functions, she requires adequate funding (Abomaye-Nimenibo, Williams &Friday, 2018). Tax is therefore a major source of government revenue all over the world. It is an opportunity for the government to collect revenue needed to discharge its pressing obligations. It has a bearing on the Gross Domestic Product (GDP), which is the standard indicator for measuring the economic well-being of a nation. (Okafor, 2012) and Sanni (2007), advocated the use of tax as an instrument of social engineering, to stimulate general and/or sectoral economic growth. A tax system offers itself as one of the most effective means of mobilizing a nation’s internal resources and tends itself toward creating an environment conducive to the promotion of economic growth (Azubike, 2009)