Tax Compliance and Non-Oil Revenue in Nigeria between 2008 – 2018: A Time Series Study

Authors

  • Okoro Charles Ugochukwu
  • Davies Stanley Diepiriye
  • Charles Fortune Bella
  • Awheme Blessing Ewoma

Keywords:

Non-Oil revenue, Tax, Tax reform, Time series

Abstract

The study looked at how Nigeria tax reform relates to non-oil revenue. The objective was to ascertain the extent to which tax reform affect non-oil revenue. Tax reform was proxied by reform in corporate profit tax, personal income tax, excise duty tax and value added tax while non-oil revenue was proxy by federal collected non-oil revenue. Time series data were sourced from Central Bank of Nigeria Statistical Bulletin, Nigeria Bureau of Statistics and publications of Federal Inland Revenue Service. The study adopted the ordinary least square method of data analysis using econometrics view. Cointegration test, Granger causality test, unit root test and vector error correction estimate was used to determine the dynamic relationship between tax reforms and non-oil revenue in Nigeria. It was found the tax reforms have positive and significant effect on non-oil revenue. We recommend that effort should be made to achieve full autonomy for the Federal Inland Revenue Service as this will enhance the operational efficiency of board. The study also recommends that restructured policies from the tax reforms should fully be implemented.

 

Published

2021-05-10