IMPACT OF NON-OIL TAX REVENUE ON THE NIGERIAN ECONOMY

Abstract

The study assessed the impact of non-oil tax revenue on the economic growth of Nigeria for period from 2004 to 2013. Company Income Tax, Value Added Tax and Custom & Excise Duties were purposefully selected to proxy non-oil tax revenue. Data for company Income Tax, Value Added Tax and Custom & Excise Duties was collected from the Central Bank of Nigeria statistical bulletin and National Bureau of Statistics. A Regression analysis was carried out so as to determine if the non-oil tax revenue has any significant effect on the nation’s economy. Findings showed that company Income Tax, Value Added Tax and Custom & Excise Duties have significant impact on the economic growth of the nation. This implies that non-oil taxes are very important as revenue bases in Nigeria. The study suggested diversification of the revenue base of the nation more to the non-oil tax revenue so as to further strengthen its impact on the nation’s economy.