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

Issue 1, March 2023

Description

JOURNAL OF TAXATION AND ECONOMIC DEVELOPMENT (JTED)

Authors

AWODE S. Segun Department of Economics, Olabisi Onabanjo University, Ago-Iwoye, Ogun State, Nigeria E-mail: awodesegun@gmail.com, ss.awode@niser.gov.ng TELLA A. Sheriffdeen Department of Economics, Olabisi Onabanjo University, Ago-Iwoye, Ogun State, Nigeria E-mail: satellang@yahoo.com, satellang@gmail.com ONANUGA T. Abayomi Department of Economics, Olabisi Onabanjo University, Ago-Iwoye, Ogun State, Nigeria E-mail: onanuga.toyin@oouagoiwoye.edu.ng

Abstract

ABSTRACT This study examined the cyclical pattern of fiscal policy in Nigeria, focusing on fiscal variables from both expenditure and taxation sides. On the expenditure side, the cyclical patterns of both recurrent and total expenditures were analyzed while personal income tax, company income tax, and value-added tax were examined on the taxation side. The study used the ex-post facto research design, employing both correlation and ordinary least square regression approaches to analyze annual time series data spanning through 1981 to 2020. The results from the two approaches showed that all the fiscal variables follow a procyclical pattern, except the value-added tax which follows an acyclical pattern. This implies that during economic booms, government spends more and lessens taxes, while during economic busts, government spends less and raises taxes. The study, therefore, concludes that fiscal policy in Nigeria is procyclical. Owing to the unsustainability and growth-receding characteristics of procyclical fiscal policy, it is therefore important that the Nigerian government formulate and implement policy changes aimed at enhancing the nation’s capacity to save in prosperous times in order to create fiscal reserves that could be utilized in difficult times.

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