The Effect of Revenue from Taxation on Gross Domestic Product and Human Development Index in Nigeria

Main Article Content

Odogu Laime Isaac
Obalakumo Pereowei Anderson
Odoko Dan
Dadowei Opritari Maxwell


Aims: This study investigates the effect of revenue from taxation on gross domestic product and human development index in Nigeria. Secondary data is used from the Central Bank of Nigeria, the World Bank, and Federal Inland Revenue Service for this study.

Study Design: The Ex-post facto research design was used for the study.

Methodology: The study used secondary data and was conducted via the relevant econometric tests.

Result: The study reveals that revenues from taxation have effects on gross domestic product and human development index. Based on the result, the study concluded that taxation is an essential component of fiscal policy that the Nigerian government can use to stimulate economic development. Based on the conclusion, the study made the following recommendations amongst others that, government need to improve on the personal income tax collection process to enable more individuals disclose their income for tax assessment. This is because most self employed (skilled workers such as carpenters, bricklayers, welders, etc) Nigerians don’t pay income tax voluntarily. There should be an improvement in the value added tax administration in Nigeria to reduce the lack of accountability of VAT by the agents. The tax officials and other agents of the relevant tax authorities need to reduce their fraudulent activities with tax payers to increase the amount of tax collected for the economic growth of Nigeria.

Revenue from taxation, GDP, human development index, infrastructure

Article Details

How to Cite
Isaac, O. L., Anderson, O. P., Dan, O., & Maxwell, D. O. (2021). The Effect of Revenue from Taxation on Gross Domestic Product and Human Development Index in Nigeria. Asian Journal of Economics, Business and Accounting, 21(6), 1-11.
Review Article


Ogbonna GN, Appah E. (2012). Petroleum profit tax and Economic growth: Cointegration Evidence from Nigeria. Asian Journal of Business Management. 2012;(3):267-274.

Ola CS. (2001). Income Tax Law and Practice in Nigeria, Ibadan: Heinemann Educational Books (Nigeria) Plc; 2001.

Beredugo SB, Azubike JUB, Mefor IP. Addressing Tax evasion and avoidance through effective tax audit and investigation in cross River State, Nigeria. International Journal of Research and Scientific Innovation. 2019;6(6):65- 69.

Tosun MS, Abizadeh S. (2005). Economic growth and tax components: An analysis of tax changes in OECD”, Applied Economics. 2005;37:2251-2263.

Nzotta SM. (2007). Tax evasion problems in Nigeria: A Critique. The Nigerian accountant. 2007;40(2):40-43.

Igbeng EI, Beredugo SB, Adu VA. Evaluation of public accountability and tax culture among tax payers in Nigeria. International Journal of Management Science and Business Administration. 2015;1(9):7–13.

Okoye DVC, Akenbo CO, Obara LC. Promoting Sustainable tax compliance in the informal sector in Nigeria, International journal Arts and Humanities. 2012;1(1):ISSN:2225-8590.

Nwosu EJ. Tax evasion problems in Nigeria: A Critique, the Nigerian Accountant. 2007;40(2):40-57.

Dwivedi, DN. Managerial Economics)(6th ed.), New Delhi: Vikas Publishing House (PVT) Ltd. 2004

Osiegbu PI, Onuorah AC, Nnamdi I. Public Finance: Theories and practices, Asaba: C.M. Global Company Ltd; 2010.

Tomljanocich M. The role of state fiscal policy in economic growth, contemporary economic policy. 2004;22(3):318- 330.

Worlu, CN. and Nkoro, E. Tax Revenue and Economic Development in Nigeria: A Macroeconometric Approach. Academic Journal of Interdisciplinary Studies. 2012;1(2):211-223.

Ojewole A. Human Capital Development and Economic Growth in Nigeria. Journal of Social Sciences. 2015;11(2):12- 28.

Onwuka, C. C. and Abonyi, S. E. Socio-Economic Impact of Recession and Youth Unemployment: the Nigerian Experience. Enugu State University of Science & Technology Journal of Social Sciences. 2019;4(2):336-353.

Gujarati DN, Porter DC. Basic Economics, (5th ed.), New York: McGraw-Hill International; 2009.

Asterious D, Hall SG. Applied Econometrics, London: Palgrave macmillan; 2007.

Ogbonna GN, Appah E. Impact of tax reform and Economic growth of Nigeria; A time series analysis. Current Research Journal of Social Sciences. 2011;4(1):62-68.

Chigbu EE, Akujuobi LE, Appah E. An Empirical Study on the Causality between Economic Growth and Taxation in Nigeria”, Current Research Journal of Economic Theory. 2012;4(1-2):29-38.