Tax Revenue Generation and Economic Growth: A Pre and Post Treasury Single Account Implementation in Nigeria (Published)
This study examines the relationship between tax revenue generation and economic growth in Nigeria before and after the implementation of the Treasury Single Account (TSA). The TSA, introduced in 2012 and fully implemented in 2015, aimed to consolidate all government revenues into a single account at the Central Bank of Nigeria to enhance transparency, accountability, and financial management. The study focuses on key tax types—Value Added Tax (VAT) and Company Income Tax (CIT)—and their correlations with economic growth, measured by Gross Domestic Product (GDP) growth rates. Prior to the TSA implementation, weak correlations were observed between tax revenues and GDP growth. However, post-TSA, there emerged positive correlations, indicating improvements in tax collection and administration. VAT exhibited a weak positive relationship with GDP growth, while CIT showed a strong positive correlation, underscoring the impact of better tax practices on economic development. Additionally, custom and excise duties demonstrated a moderate positive correlation with GDP growth, suggesting enhanced revenue generation from trade-related taxes. The findings highlight the effectiveness of the TSA in improving tax revenue generation and its positive impact on Nigeria’s economic growth. The study recommends that policymakers enhance VAT compliance, optimize CIT collection, and streamline customs procedures to further stimulate economic growth. These measures can ensure that the gains from TSA implementation are maximized, contributing to sustainable economic development in Nigeria.
Keywords: Government Revenue, Nigeria, Treasury Single Account (TSA), company income tax (CIT), economic growth, tax revenue generation, value added tax (VAT)
Effects of Tax Audit on Tax Compliance in Ekiti State, Nigeria (Published)
The paper examined the effects of tax audit on tax compliance in Ekiti State, Nigeria. The study employed primary data where 60 questionnaires were randomly distributed to Federal Inland Revenue Service and Ekiti State Board of Internal Revenue Service Staff. Multinomial Logistic Regression analysis was employed as the estimation technique. The findings revealed that the multinomial logistic regression model fitting information was significance with the p-value of 0.040 which implies that the tax audit can influence the tax compliance. Also, the likelihood ratio tests of multinomial regression showed that tax accuracy and current returns have not been significantly affecting tax compliance, that tax law has effect on tax compliance while tax procedure has no effect on tax compliance during the study period. The study concluded that tax audit is yet to make any substantial effect on tax compliance. It therefore recommended that the relevant tax authority at all levels should improve the standard of tax audit employed for effectiveness and efficiency and equally, relevant tax authority should provide a policy that would allow the tax payers to cooperate during the period of tax audit.
Keywords: Government Revenue, Tax, Tax Audit, Tax Compliance
Re -Engineering Vat Administration in Nigeria for Economic Development (Published)
The study examined the possibility of “Re-engineering VAT Administration in Nigeria for Economic Development (1994-2014)”. The study used across sectional survey design involving the survey of existing data (secondary sources). The research instruments used in collection of data for this study were mainly secondary data from the FIRS Website, CBN & NBS Annual Statistical Bulletins. This study used the econometric technique of Ordinary Least Square (OLS) in form of Multiple Linear Regressions. The regression model was estimated through the use of Statistical Package for Social Sciences (SPSS). The study found that VAT is of immense benefit to government. Through taxation, government ensures that resources are channeled towards important projects in the society. However, VAT is being mismanaged in Nigeria as the study has conclusively revealed that: There is no significant relationship between value added tax and revenue growth in Nigeria, there is significant relationship between value added tax and the consumption pattern in Nigeria and there is no significant relationship between value –added tax and the economic development in Nigeria from 1994-2014. Therefore, the study recommends that: Efforts should be made by the government to fight corruption and if possible, introduce capital punishment depending on the degree of mismanagement of public funds or embezzlement of public funds to deter those who steal VAT funds. Also value added tax (VAT) Act should be amended further to impose VAT based on destination principle. This will enable VAT to be imposed on imported services rendered by a non-resident company outside Nigeria.
Keywords: Administration, Economic Development, Government Revenue, Re-Engineering, Value Added Tax, consumption patterns