IMPACT OF TAXATION ON REVENUE GENERATION IN NIGERIA

ABSTRACT

The study assessed the impact of taxation on revenue generation in Nigeria. Three (3) research questions were raised for the study and all were formulated into hypotheses and tested. Consequently, related literature on the conceptual review, theoretical framework and empirical review of taxation and revenue generation in respect to company income tax, petroleum profit tax and value added tax were discussed and how this taxes have impacted the revenue generated within the period of 2011-2022. The ex-post facto research design was used for the study. The instrument used for the collection of data was an Inventory Records of Generated Tax Revenue. Secondary data were obtained from both the Central Bank of Nigeria Statistical Bulletin and Federal Inland Revenue Service annual reports from 2011-2022. The data collected for the research questions were analyzed using descriptive statistical tools such as mean and standard deviation while the hypotheses were analyzed using Pearson Correlation and Ordinary Least Square Regressions and was tested at 0.05 level of significance. The study therefore recommended amongst other things that, efforts should be made to widen the tax net and stringent penalties should be meted by the federal, state and local governments to people who evade and avoid tax payments in order to discourage tax evasion and tax avoidance.