Federal tax heads and economic growth in Nigeria

Authors

  • CHINEMEREM MIRIAN NGWANGWA University of Nigeria, Enugu Campus
  • Robinson Onuora Ugwoke University of Nigeria, Enugu Campus
  • Obioma V. Ugwoke University of Nigeria, Enugu Campus
  • Amara Priscillia Okoye (Ozoji) University of Nigeria, Enugu Campus

Keywords:

Federal Tax Heads, Company Income Tax, Value Added Tax, Petroleum Profit Tax, Customs and Excise Duties, Personal Income Tax, Economic Growth (GDP)

Abstract

This study examined the effect of five federal tax heads—Company Income Tax (CIT), Value Added Tax (VAT), Petroleum Profit Tax (PPT), Customs and Excise Duties (CED), and Personal Income Tax (PIT)—on Nigeria's economic growth, measured by Gross Domestic Product (GDP) growth rate. An ex-post facto research design was adopted using secondary data obtained from the Federal Inland Revenue Service (FIRS), Central Bank of Nigeria (CBN), National Bureau of Statistics (NBS), and World Bank Development Indicators for the period 2000–2024. Data were analysed using descriptive statistics, unit root and cointegration tests, correlation analysis, and Ordinary Least Squares (OLS) regression. The results showed that Company Income Tax (β = -0.2366; p = 0.030) and Customs and Excise Duties (β = -0.5174; p = 0.0038) had negative and statistically significant effects on GDP growth. Conversely, Value Added Tax (β = 0.3184; p = 0.021) and Petroleum Profit Tax (β = 0.3515; p = 0.0173) exerted positive and statistically significant effects, while Personal Income Tax (β = 0.4478; p = 0.0965) had a positive but statistically insignificant effect. The study recommends reforming corporate and trade taxes, strengthening VAT administration, improving petroleum tax revenue management, and enhancing Personal Income Tax enforcement to promote sustainable economic growth in Nigeria.

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Published

2026-08-14

How to Cite

NGWANGWA, C. M., Ugwoke, R. O., Ugwoke, O. V., & Okoye (Ozoji), A. P. (2026). Federal tax heads and economic growth in Nigeria. International Journal of Economic Perspectives, 20(8), 852–863. Retrieved from https://ijeponline.org/index.php/journal/article/view/1373

Issue

Vol. 20 No. 8 (2026)

Section

Peer Review Articles
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Copyright (c) 2026 CHINEMEREM MIRIAN NGWANGWA, Robinson Onuora Ugwoke, Obioma V. Ugwoke, Amara Priscillia Okoye (Ozoji)

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