Effects of Oil and Non-oil Tax Revenue on Economic Growth in Nigeria: Evidence of Quarterly Tax Inflows from 2010 to 2019

Ifeoma Osamor; Matthew Abata; Adebola Adebanjo

doi:doi:10.11648/j.ijafrm.20220703.14

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Effects of Oil and Non-oil Tax Revenue on Economic Growth in Nigeria: Evidence of Quarterly Tax Inflows from 2010 to 2019

Ifeoma Osamor, Matthew Abata, Adebola Adebanjo

Published in International Journal of Accounting, Finance and Risk Management (Volume 7, Issue 3)

Received: 3 August 2022 Accepted: 23 August 2022 Published: 16 September 2022

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Abstract

Oil boom in 1970s have positive and negative impact on the Nigerian economy. The recent oil price dwindling in the world has created problems for government of the country to adequately generate revenue to settle government expenditures. The study investigated the effects of oil and non-oil taxes revenue on economic growth in Nigeria. Gross Domestic Product (GDP) was used as proxy for economic growth, while oil tax revenue was proxy with Petroleum Profit Tax (PPT); non-oil taxes were proxy with Company Income Tax (CIT), Capital Gain Tax (CGT), Stamp Duties (SD) and Education Tax (EDT). Ex-post facto research design was adopted and secondary data were sourced from the Federal Inland Revenue Service (FIRS) and Central Banks of Nigeria (CBN) Statistical Bulletin on quarterly basis for nine years (2011-2019). Descriptive statistics, Unit roots test, Toda Yamamoto (Granger Causality Test and Wald Test) were used to analyze the time series data. The results of the study showed that oil tax revenue have no influence on economic growth while non-oil taxes have effect on economic growth. Therefore, the study recommended that government need to initiate regular tax reforms that will encourage small and medium scale enterprises (SME’s) and encourage full diversification of the economy into technological, agricultural, mechanical and productivity aspects to improve the standard of living of the citizens.

Published in	International Journal of Accounting, Finance and Risk Management (Volume 7, Issue 3)
DOI	10.11648/j.ijafrm.20220703.14
Page(s)	133-139
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Gross Domestic Product, Taxes, Oil Tax, Non-oil Tax, Revenue

References

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APA Style

Ifeoma Osamor, Matthew Abata, Adebola Adebanjo. (2022). Effects of Oil and Non-oil Tax Revenue on Economic Growth in Nigeria: Evidence of Quarterly Tax Inflows from 2010 to 2019. International Journal of Accounting, Finance and Risk Management, 7(3), 133-139. https://doi.org/10.11648/j.ijafrm.20220703.14

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ACS Style

Ifeoma Osamor; Matthew Abata; Adebola Adebanjo. Effects of Oil and Non-oil Tax Revenue on Economic Growth in Nigeria: Evidence of Quarterly Tax Inflows from 2010 to 2019. Int. J. Account. Finance Risk Manag. 2022, 7(3), 133-139. doi: 10.11648/j.ijafrm.20220703.14

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AMA Style

Ifeoma Osamor, Matthew Abata, Adebola Adebanjo. Effects of Oil and Non-oil Tax Revenue on Economic Growth in Nigeria: Evidence of Quarterly Tax Inflows from 2010 to 2019. Int J Account Finance Risk Manag. 2022;7(3):133-139. doi: 10.11648/j.ijafrm.20220703.14

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@article{10.11648/j.ijafrm.20220703.14,
  author = {Ifeoma Osamor and Matthew Abata and Adebola Adebanjo},
  title = {Effects of Oil and Non-oil Tax Revenue on Economic Growth in Nigeria: Evidence of Quarterly Tax Inflows from 2010 to 2019},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {7},
  number = {3},
  pages = {133-139},
  doi = {10.11648/j.ijafrm.20220703.14},
  url = {https://doi.org/10.11648/j.ijafrm.20220703.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20220703.14},
  abstract = {Oil boom in 1970s have positive and negative impact on the Nigerian economy. The recent oil price dwindling in the world has created problems for government of the country to adequately generate revenue to settle government expenditures. The study investigated the effects of oil and non-oil taxes revenue on economic growth in Nigeria. Gross Domestic Product (GDP) was used as proxy for economic growth, while oil tax revenue was proxy with Petroleum Profit Tax (PPT); non-oil taxes were proxy with Company Income Tax (CIT), Capital Gain Tax (CGT), Stamp Duties (SD) and Education Tax (EDT). Ex-post facto research design was adopted and secondary data were sourced from the Federal Inland Revenue Service (FIRS) and Central Banks of Nigeria (CBN) Statistical Bulletin on quarterly basis for nine years (2011-2019). Descriptive statistics, Unit roots test, Toda Yamamoto (Granger Causality Test and Wald Test) were used to analyze the time series data. The results of the study showed that oil tax revenue have no influence on economic growth while non-oil taxes have effect on economic growth. Therefore, the study recommended that government need to initiate regular tax reforms that will encourage small and medium scale enterprises (SME’s) and encourage full diversification of the economy into technological, agricultural, mechanical and productivity aspects to improve the standard of living of the citizens.},
 year = {2022}
}

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TY  - JOUR
T1  - Effects of Oil and Non-oil Tax Revenue on Economic Growth in Nigeria: Evidence of Quarterly Tax Inflows from 2010 to 2019
AU  - Ifeoma Osamor
AU  - Matthew Abata
AU  - Adebola Adebanjo
Y1  - 2022/09/16
PY  - 2022
N1  - https://doi.org/10.11648/j.ijafrm.20220703.14
DO  - 10.11648/j.ijafrm.20220703.14
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 133
EP  - 139
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20220703.14
AB  - Oil boom in 1970s have positive and negative impact on the Nigerian economy. The recent oil price dwindling in the world has created problems for government of the country to adequately generate revenue to settle government expenditures. The study investigated the effects of oil and non-oil taxes revenue on economic growth in Nigeria. Gross Domestic Product (GDP) was used as proxy for economic growth, while oil tax revenue was proxy with Petroleum Profit Tax (PPT); non-oil taxes were proxy with Company Income Tax (CIT), Capital Gain Tax (CGT), Stamp Duties (SD) and Education Tax (EDT). Ex-post facto research design was adopted and secondary data were sourced from the Federal Inland Revenue Service (FIRS) and Central Banks of Nigeria (CBN) Statistical Bulletin on quarterly basis for nine years (2011-2019). Descriptive statistics, Unit roots test, Toda Yamamoto (Granger Causality Test and Wald Test) were used to analyze the time series data. The results of the study showed that oil tax revenue have no influence on economic growth while non-oil taxes have effect on economic growth. Therefore, the study recommended that government need to initiate regular tax reforms that will encourage small and medium scale enterprises (SME’s) and encourage full diversification of the economy into technological, agricultural, mechanical and productivity aspects to improve the standard of living of the citizens.
VL  - 7
IS  - 3
ER  -

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Author Information

Ifeoma Osamor

Department of Accounting, Faculty of Management Sciences, Lagos State University, Lagos, Nigeria
Matthew Abata

Department of Accounting, Faculty of Management Sciences, Lagos State University, Lagos, Nigeria
Adebola Adebanjo

Department of Accounting, Faculty of Management Sciences, Lagos State University, Lagos, Nigeria

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APA Style

Ifeoma Osamor, Matthew Abata, Adebola Adebanjo. (2022). Effects of Oil and Non-oil Tax Revenue on Economic Growth in Nigeria: Evidence of Quarterly Tax Inflows from 2010 to 2019. International Journal of Accounting, Finance and Risk Management, 7(3), 133-139. https://doi.org/10.11648/j.ijafrm.20220703.14

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ACS Style

Ifeoma Osamor; Matthew Abata; Adebola Adebanjo. Effects of Oil and Non-oil Tax Revenue on Economic Growth in Nigeria: Evidence of Quarterly Tax Inflows from 2010 to 2019. Int. J. Account. Finance Risk Manag. 2022, 7(3), 133-139. doi: 10.11648/j.ijafrm.20220703.14

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AMA Style

Ifeoma Osamor, Matthew Abata, Adebola Adebanjo. Effects of Oil and Non-oil Tax Revenue on Economic Growth in Nigeria: Evidence of Quarterly Tax Inflows from 2010 to 2019. Int J Account Finance Risk Manag. 2022;7(3):133-139. doi: 10.11648/j.ijafrm.20220703.14

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@article{10.11648/j.ijafrm.20220703.14,
  author = {Ifeoma Osamor and Matthew Abata and Adebola Adebanjo},
  title = {Effects of Oil and Non-oil Tax Revenue on Economic Growth in Nigeria: Evidence of Quarterly Tax Inflows from 2010 to 2019},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {7},
  number = {3},
  pages = {133-139},
  doi = {10.11648/j.ijafrm.20220703.14},
  url = {https://doi.org/10.11648/j.ijafrm.20220703.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20220703.14},
  abstract = {Oil boom in 1970s have positive and negative impact on the Nigerian economy. The recent oil price dwindling in the world has created problems for government of the country to adequately generate revenue to settle government expenditures. The study investigated the effects of oil and non-oil taxes revenue on economic growth in Nigeria. Gross Domestic Product (GDP) was used as proxy for economic growth, while oil tax revenue was proxy with Petroleum Profit Tax (PPT); non-oil taxes were proxy with Company Income Tax (CIT), Capital Gain Tax (CGT), Stamp Duties (SD) and Education Tax (EDT). Ex-post facto research design was adopted and secondary data were sourced from the Federal Inland Revenue Service (FIRS) and Central Banks of Nigeria (CBN) Statistical Bulletin on quarterly basis for nine years (2011-2019). Descriptive statistics, Unit roots test, Toda Yamamoto (Granger Causality Test and Wald Test) were used to analyze the time series data. The results of the study showed that oil tax revenue have no influence on economic growth while non-oil taxes have effect on economic growth. Therefore, the study recommended that government need to initiate regular tax reforms that will encourage small and medium scale enterprises (SME’s) and encourage full diversification of the economy into technological, agricultural, mechanical and productivity aspects to improve the standard of living of the citizens.},
 year = {2022}
}

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TY  - JOUR
T1  - Effects of Oil and Non-oil Tax Revenue on Economic Growth in Nigeria: Evidence of Quarterly Tax Inflows from 2010 to 2019
AU  - Ifeoma Osamor
AU  - Matthew Abata
AU  - Adebola Adebanjo
Y1  - 2022/09/16
PY  - 2022
N1  - https://doi.org/10.11648/j.ijafrm.20220703.14
DO  - 10.11648/j.ijafrm.20220703.14
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 133
EP  - 139
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20220703.14
AB  - Oil boom in 1970s have positive and negative impact on the Nigerian economy. The recent oil price dwindling in the world has created problems for government of the country to adequately generate revenue to settle government expenditures. The study investigated the effects of oil and non-oil taxes revenue on economic growth in Nigeria. Gross Domestic Product (GDP) was used as proxy for economic growth, while oil tax revenue was proxy with Petroleum Profit Tax (PPT); non-oil taxes were proxy with Company Income Tax (CIT), Capital Gain Tax (CGT), Stamp Duties (SD) and Education Tax (EDT). Ex-post facto research design was adopted and secondary data were sourced from the Federal Inland Revenue Service (FIRS) and Central Banks of Nigeria (CBN) Statistical Bulletin on quarterly basis for nine years (2011-2019). Descriptive statistics, Unit roots test, Toda Yamamoto (Granger Causality Test and Wald Test) were used to analyze the time series data. The results of the study showed that oil tax revenue have no influence on economic growth while non-oil taxes have effect on economic growth. Therefore, the study recommended that government need to initiate regular tax reforms that will encourage small and medium scale enterprises (SME’s) and encourage full diversification of the economy into technological, agricultural, mechanical and productivity aspects to improve the standard of living of the citizens.
VL  - 7
IS  - 3
ER  -

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