Taxation and Socio-Economic Development in Nigeria
Publication Date: 06/02/2024
Author(s): OTUEDON Ajueyitse Martins Ph.D, OGODOGUN College.
Volume/Issue: Volume 7 , Issue 1 (2024)
Abstract:
The study examined the linkage between taxation and socio-economic development in Nigeria. The study employed a descriptive research design using secondary data collected from various issues of the Central Bank of Nigeria, Planning, Research and Statistics Department, National Bureau of Statistics and Federal Inland Revenue Service bulletins. The study focused on a five year time series study from 2017 – 2021. The study was anchored on the socio-political theory of taxation and the study methodology involved the review of extant literature on two groups of taxes: oil and non-oil taxes and how they are used to bring about socio-economic development proxied by GDP expenditure at constant purchase prices. The review revealed that tax revenue had positive relationships with socio-economic development, but they are grossly inadequate to meet up with GDP expenditures. The study concluded that tax revenues are under generated in relation to crude sales. It was recommended that among others that the government should engage in a complete re-organization of tax administrative machinery to reduce poor documentation of tax receipts, incidence of tax evasion and avoidance to the barest minimum to improve tax revenue and bring more taxpayers into the tax radial in order to enhance socio-economic development.
Keywords:
Socio-economic development, Taxation, Gross domestic product, Tax receipts, Taxpayers.
