TAX AS A STIMULUS FOR GROWTH AND DEVELOPMENT IN NIGERIA

TAX AS A STIMULUS FOR GROWTH AND DEVELOPMENT IN NIGERIA

ABSTRACT

Taxation and its products Many countries around the world rely heavily on taxes to implement their economic policies. For a long time, taxes have been a significant source of revenue for various levels of government. For example, in Nigeria, the laws of the country specify the types of taxes that can be collected by each of the three levels of government. This is to improve basic economic growth and development at all levels of government. However, the majority of Nigerians are deeply concerned about how taxes are spent. This study discusses the principal taxes collected by various Nigerian administrations, as reported by the Federal Inland Revenue Service (FIRS). The study used secondary data as its primary data collection strategy. Thus, the author relies on data from the Federal Inland Revenue Service report to analyse Nigeria’s varied revenues. In addition, the analysis relied heavily on a variety of books, periodicals, and official publications. The reported sentiments of Nigerians on the use of these revenues for developmental purposes were also examined. The examination of taxes collected from 1995 to 2004 indicates that the government has not fully met its commitments in terms of providing basic social amenities and other infrastructures required for a nation’s growth and development. As a result, the report makes certain recommendations that, if accepted and implemented, could contribute to Nigeria’s economic growth and development.