Full Length Research Paper

Impact of Companies Income Tax, Petroleum Profits Tax and Value-Added Tax in Nigeria


Article Number - 6376E52655335  | Vol. 3(3), pp. 31-47, November 2022  | 
 Received: 24 June 2022 |  Accepted: 10 October 2022  |   Published: 30 November 2022

Copyright © 2023 Author(s) retain the copyright of this article.
This article is published under the terms of the Creative Commons Attribution License 4.0.


The study examined the impact of company income tax, petroleum profits tax, and value-added tax in Nigeria, over the study period (1981 to 2021). The study adopted descriptive and inferential statistics using tables and econometric models to achieve the result. Petroleum profit Tax (PPT), Value Added Tax (VAT) and Companies Income Tax (CIT), Gross Domestic Product (GDP) are the major variables used in the study. Secondary data was used and sourced from CBN Statistical Bulletin and Federal Inland Revenue Service. The results of the unit root test obtained showed that the variables were both at levels and at first difference, as such portend the need for ARDL long run relationship among the variables. While in the bounds testing approach, there was a long run relationship between government financing, economic growth and infrastructural development. Furthermore, in the relationship of government financing and infrastructural development the result revealed that there is long run relationship between disaggregated variables of government financing on economic growth and infrastructural development in Nigeria. The coefficient of the error correction model is the speed of the adjustment of infrastructural development to shocks in exogenous variables in the model. The study therefore concluded that companies’ income tax, petroleum profits tax, and value added tax have a significant effect on economic growth and development in Nigeria. Therefore, the study recommends that government should engage in a complete re-organization of the tax administrative machineries in order to reduce to tolerable levels the problem of tax evasion and avoidance, and to enhance the tax base of government; employment opportunities should be created; and a good environment for entrepreneurship and innovation to thrive should be made available, using tax proceeds.


Keywords: Taxation, Economic Growth, Tax authority, Tax base, Tax administration.




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Caleb University, Nigeria.

*Corresponding author. Email: [email protected]; [email protected]



How to Cite this Article

Akpokhio, M. & Ekperiware, M. C. (2022). Impact of Companies Income Tax, Petroleum Profits Tax and Value-Added Tax in Nigeria. Journal of Economics, Business Management and Administration, 3(3), 31-47.



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Abbreviation: J. Econ. Bus. Manage. Admin.
ISSN: 2971-7736 (Online)
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