TAX REVENUE

The study investigated the tax revenue, institution and public infrastructure in Nigeria. It aimed to examine the impact of tax revenue and institution in public infrastructure in Nigeria. To guide the study, three research questions were raised with three hypotheses tested. The study employed both descriptive and multiple regression analysis with ordinary least
squares (OLS) econometric techniques. The data for the study were collected from the Central Bank of Nigeria (CBN) Statistical Bulletin and world development indicators from year 1981 to 2021. Reliability of estimated results was determined by using the economic or ‘a priori’ criteria, statistical criteria and econometric criteria. Data were analysed using Augmented Dickey- Fuller (ADF) test, Johansen cointegration test and Error correction mechanism. The result revealed that, in the long run, there was a significant relationship between tax revenue and infrastructure development in Nigeria. However, in the short run, the study revealed negative impact due to inefficiencies. Also, institutional quality, in the long run, did not have a statistically significant impact on infrastructure development. However, in the short run, there was an initial positive impact of institutional quality on infrastructure development, followed by a negative lagged effect. The results also showed that Foreign Direct Investment (FDI) had a weak and statistically insignificant positive impact on infrastructure development in Nigeria. Furthermore, public debt had a marginally significant positive impact on infrastructure development in the long run. However, in the short run, public debt had a significant negative impact. Based on these findings, it was recommended that policymakers should enhance tax revenue collection through improved tax administration and tax evasion reduction, and provide efficient funds allocation for infrastructure. It was also recommended that policymakers should strengthen fiscal transparency and institutional quality by focusing on anti-corruption in procurement. Furthermore, government should create a favourable investment climate by reducing regulatory bottlenecks and promoting public-private partnerships to attract infrastructurefocused FDI and also prioritize prudent public debt management, and balance borrowing
with sustainable servicing to maintain fiscal stability. For sustainable economic growth, policymakers should adopt a comprehensive policy framework that combines fiscal discipline, institutional reforms and private sector engagement

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)

This study examines the impact Value Added Tax (VAT) revenue and economic performance in Nigeria using time series data from year 1994-2020. The result of the estimated OLS model shows that there is a positive and significant relationship between VAT revenue and economic performance in Nigeria which was proxied by the real GDP at 5% level of significance. Personal Income Tax was found to positively affect economic growth and was significant at 5% level and lastly, the analysis revealed that a positive relationship exists between VAT revenue and total household consumption expenditure and the relationship was found to have being statistically significant at 5% level. The study recommended that government should consider the implications when making decisions about VAT rates and structure and that a potential solution is to mitigate the negative effects of VAT on lower-income households by implementing a progressive tax system where lower rates are applied to basic necessities and higher rates to luxury goods and services. The study further recommended that in order to enhance economic growth of Nigeria through VAT revenue, the enlightenment of the public on how VAT works, how it is calculated and how it affects them can increase understanding and acceptance of the tax.

The primary aim of this research was to assess the impact of tax evasion and tax avoidance on revenue generation in Nigeria. The study examines the relationship between tax evasion, tax avoidance, total revenue generation and the Nigerian economy. The research design adopted in this study was the survey research design; primary data were collected through the use of questionnaire. Secondary data was also supplemented with primary data.The findings revealed that a significant relationship exists between tax evasion/avoidance and their contributing factors. It was also found that tax evasion and tax avoidance have a significant impact on revenue generation in Nigeria. The study therefore recommends, that the tax authorities should properly review and improve their assessment and collection procedures. It was also recommended that the tax authority’s audit unit should be made stronger to regularly check and verify the tax payments collected by officials at all levels