TAX REVENUE AND ECONOMIC DEVELOPMENT IN NIGERIA

ABSTRACT: Numerous prior literatures revealed show widespread adoption of economic growth indicator tomeasure economic development. This research was therefore carried out to examine the effect of tax revenue oneconomic development in Nigeria, using human development index and unemployment rate as dependentvariables and personal income tax, company income tax, petroleum profit tax and value added tax asindependent variables. Panel data set covering 2004 – 2019 were sourced from the Federal Inland RevenueService (FIRS) and the National Bureau of Statistics (NBS) bulletin. Result obtained from the application of theco-integration and error correction modeling techniques on disaggregated data covering the study periodrevealed that tax revenue has not significantly influenced human development and unemployment rate inNigeria. Based on this outcome, it was recommended among other things that the fiscal indiscipline which haseaten deep into the lives of Nigerians at the high and low places should be effectively discouraged while those inauthority should channel the revenue to provide infrastructure, education, security and sustainable programs thatwill improve the standard of living of the people and mitigate the rate of unemployment in the country.

KEY WORDS: Economic Development, Human Development Index, Economic Growth, Tax Revenue andTaxation