Journal • CITN Journal

Editorial Board

Editor-in-Chief

Professor Rafiu Oyesola Salawu

Department of Management & Accounting, Faculty of Administration, Obafemi Awolowo University, Ile-Ife

Managing Editor

Professor Godwin Emmanuel Oyedokun

Department of Management & Accounting, Lead City University, Ibadan, Nigeria

Editorial Board Secretary

Mary-Fidelis Chidoziem Abiahu

Director, Research and Professional Standard, Chartered Institute of Taxation of Nigeria

Editorial Board Members

Professor Chinedum Nathaniel Nwezeaku

Federal University of Technology, Owerri

Professor John Adeoti

Nigeria Institute of Social and Economic Research (NISER), Ibadan

Professor Uche Jack-Osimiri

Faculty of Law, River State University, Port Harcourt

Professor Aruwa Suleiman Akwu-Odo Salihu

Nasarawa State University, Keffi Nasarawa State Nigeria

Dr. Eiya Ofiafoh Ofiafoh (Associate Professor)

Department of Accounting, University of Benin, Benin City, Nigeria

Dr. Stephen Chukwuemeka Mark Abani

MCSA Worldwide Projects Limited, Abuja, Nigeria

Dr. Kenny Adedapo Soyemi

Department of Accounting, Olabisi Onabanjo University, Ago Iwoye, Ogun State, Nigeria

Professor Joseph Uchenna Uwaleke

Department of Banking & Finance, Nasarawa State University, Keffi Nasarawa State, Nigeria

Barrister Chukwuemeka Eze

Faculty of Law, Nasarawa State University, Keffi Nasarawa State, Nigeria

Mr. Simon Nwanmaghyi Kato

Federal Inland Revenue Service, Chairman’s Office, Abuja, Nigeria

IMPACT OF TAXATION ON WEALTH CREATION IN NIGERIA (2010-2023)

Description

IMPACT OF TAXATION ON WEALTH CREATION IN NIGERIA (2010-2023)

Authors

JAHUN, Fadheela Uba and DANDAGO, Kabiru Isa

Abstract

The study examined the impact of taxation on wealth creation in Nigeria for a period of fourteen years (2010-2023). The study’s specific goal is to evaluate the influence of total tax, petroleum profit tax, nor oil tax, and value added tax on wealth creation in Nigeria. Correlational research design is used for this study. The study employs secondary form of data which have been sourced from Central Bank of Nigeria (CBN) statistical bulletin and published Federal Inland Revenue Statement (FIRS). Data extracted from published reports of the CBN and the FIRS are analyzed by means of descriptive statistics, correlation and multiple regressions. The study found that taxation (direct and indirect) is generally an instrument for sustainable revenue generation and collection, stabilization of the economy, controlling productive and consumption behaviors and narrowing of the gap between the rich and the poor. Individually, some taxes have more impact on wealth creation than others. For example, the impact of Petroleum Profit Tax (PPT) is higher than that of Companies Income Tax (CIT) or Value Added Tax (VAT). The study recommends that the government should intensify efforts at blocking all loopholes in the tax laws as well as bring more prospective taxpayers (firms and individuals) into the tax net, especially those big businessmen and women, who do not pay taxes properly. More so, the Nigerian government should judiciously use the tax revenue collected for executing various developmental projects, including the empowerment of micro, small, and medium enterprises that would improve the quality of livelihood and infrastructures in the country, with a view to creating massive wealth which could pave way for the country towards sustainable development.

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