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

Volume 24, Issue 2

Description

PROGRESSIVE TAXATION AND INCLUSIVE GROWTH IN NIGERIA: AN ECONOMETRIC APPROACH

Authors

SALIHU Musa Olalekan

Abstract

Nigeria's experience highlights a persistent struggle to translate economic growth into inclusive growth, with debates about the role of taxation generating various interpretations in academic literature. The link between progressive taxation and inclusive growth remains underexplored in Nigeria. This study investigated the effect of progressive tax on inclusive growth, using secondary annual data from 1991 to 2023. Data on Gross Domestic Product per employed person, tax progressivity, and government expenditure on education were obtained from the Federal Inland Revenue Service and World Bank’s World Development Indicators, while the political stability index was sourced from the International Country Risk Group. The analysis was conducted using the Autoregressive Distributed Lag (ARDL) method, with inferences made at a 5% significance level. Results indicate a stable long run cointegration relationship; oil tax progressivity and government education expenditure significantly promote inclusive growth, whereas political instability significantly hinders it. In the short run, non-oil tax progressivity, education expenditure, and political instability have significant impacts on inclusive growth, while oil tax progressivity does not. This study recommends strengthening the progressivity of non-oil taxes by improving tax administration and increasing investment in education to enhance productivity and equity.

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