Fineboy Ikechi JOSEPH, Cordelia Onyinyechi OMODERO, Manasseh Obioma OMEONU



The study examined the impact of tax revenue on economic growth of Nigeria proxied as gross domestic product (GDP) from 2000-2017). The study employed Exploratory and ex-post facto designs and secondary data sourced from Federal Inland Revenue Services (FIRS), UNCTAD, FDI/MNE database, World Bank Report, United Nations Development Programme (UNDP) reports, CBN statistical bulletin were used. Ordinary Least Squares (OLS) regression technique was adopted to test the hypotheses of the study. The result reveals that tax revenue has significant impact on GDP in Nigeria with R-squared showing that about 87% variations in GDP can be attributed to tax revenue, while the remaining 23% variations in GDP are caused by other factors not included in this model. This is further emphasized by the T-statistic p-value of 0.001 which shows that the regression result is statistically significant because it is less than 5%, level of significance adopted for this study. The result from regression analysis also revealed that there is positive relationship between foreign direct investment and Gross Domestic Product, with a p- value of + 0.000, + 0.001 < 0.05% significance level. The study concluded that tax revenue has a significant impact on GDP in Nigeria. Also there is a positive relationship between FDI and economic growth in Nigeria; therefore the more FDI increases the more economic growth. The study recommended that functional tax structures that would ensure that tax is collected from all taxable individuals, group of individuals and corporate bodies and remitted accordingly to the government without diversion should be instituted to widen the revenue base of the country. Government should liberalize the Nigerian economy the more by removing all barriers to trade such as arbitrary tariffs, import and export duties and other levies to encourage foreign investors.


Keywords: Tax Revenue, Economic Growth and GDP, Foreign Direct Investment

Full Text:




Adegbie, F.F. & A.S. Fakile, (2011). Company income tax and Nigeria economic development. European Journal of Social Sciences, 22(2), 309 - 332.

Adereti, S.A., J.A. Adesina & M.R. Sanni, (2011). Value added tax and economic growth of Nigeria. European Journal of Humanities and Social Sciences, 10(1), 555-571.

Anyaduba, J.O., (2004). Partnership taxation in Nigeria. ICAN Student Journal, 9(2), 15 - 17.

Anyaehie, C.M. & Areji, C.A. (2015). Economic diversification for sustainable development in Nigeria. Open Journal of Political Science, 5, 87 – 94.

Apata, T.G., A. Folayan, O.M. Apata & Akintua, J. (2011). The economic role of Nigeria’s subsistence agriculture in the transition process: Implications for rural development. Paper Presented at the 85th Annual Conference of the Agricultural Economics Society, 18 – 20th April, Warwick University, Warwick.

Baghebo, M. (2012). Effective utilization of tax revenue in Nigeria. International Journal of Academic Research in Business and Social Sciences, 7(2), 280 – 289.

Balestra, P. (1970). On the efficiency of ordinary least-squares in regression models. Journal of the American Statistical Association, 65(331), 1330- 1337.

Bird, M.R. & M.E. Zolt, (2003). Introduction to tax policy design and development. Available from [Accessed 1st October, 2015].

Brautigam, D. (2008). Taxation and governance in Africa. AEI online. Available from [Accessed 27th September, 2015].

Bukie, H.O. & T. Adejumo, (2013). The effect of tax revenue on economic growth in Nigeria. International Journal of Humanities and Social Invention, 2(6), 16 – 26.

Bukie, O.H., O.T. Adejumo & G.E. Edame, (2013). The effects of tax revenue on economic growth of Nigeria. International Journal of Humanities and Social Science, 2(6), 16 - 26.

Ezejelue, A.C. & Ihendinihu, J.U (2006). Personal Income Taxation in Nigeria. LIins Consult Nig, Okigwe.

Ezirim, A.C., C.T. Okeke & O.T. Ebiringa, (2010). Achieving vision 2020 in Nigeria:

A review of the economic and karket-oriented business reforms. Journal of Sustainable Development in Africa, 12(4), 58-71.

Federal Inland Revenue Service (2014). Annual summary of collected tax in Nigeria. Available online at:

Global Alliance for Tax Justice (2015). Position Paper and Recommendations for The Third UN Conference on Financing for Development.

Ihenyen, C.J. and E.G. Mieseigha (2014). Taxation as an instrument of economic growth (The Nigerian Perspective). Information and Knowledge Management, 4(12), 49 – 53.

Kiabel, B.D. and N.G. Nwokah (2009). Boosting revenue generation by state governments in Nigeria: The tax consultants’ option revisited. European Journal of Social Sciences, 8(4), 532–539.

Koutsoyiannis, A. (1977). Theory of econometrics. London: The Macmillan Press Ltd.

Kusi, N.K. (1998). Tax reform and revenue productivity in Chana. Nairobi, Kenya: The African Economic Research Consortium. International Journal of Asian Social Science, 6(10), 604-613.

Ogbonna, G. N. (2012). Impact of tax reforms and economic growth of Nigeria: A time

Series analysis. Current Research Journal of Social Sciences, 4 (1), 62-68.

Omodero, C.O. (2019). A relative assessment of the contributions of agriculture, oil and

Non-oil tax revenues to Nigeria’s economic expansion. Annals of Spiru Haret University, Economic Series, 19(2), 139-151. DOI:


Data citation


Copyright (c) 2019 Cordelia Onyinyechi Omodero, FINEBOY IKECHI JOSEPH, MANASSEH OBIOMA OMEONU

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

As to respect GDPR, this site do not allow free registation. Please contact us at:

GDPR Policy:

Please read the statement below:
Processing of personal data and free movement of these data

Registering with this site the author agree with the collection, processing and use of his personal data, exclusively within the ASHUES journal.




To crown and encourage research efforts of the authors, at the end of a year of publishing our journal board will award online the best papers by distinctions:

1. Best Original Paper Award -  for the paper that has brought something completely new in the reader's attention (a new concept, a new trend, a new proposal in research, etc.)

2. Excellence Award - for the most cited paper and visualized in the online environment during the year

3. First, Second and Third Award- for the best documented and substantiated papers during the year

4. Special Award - to award PhD students and postdocs for the most well documented and substantiated paper