FEDERAL TAXES AND INFRASTRUCTURAL DEVELOPMENT IN NIGERIA 1990 – 2022

Abstract

The study examined federal taxes and infrastructural development in Nigeria 1990-2022. The specific objective of the study among others were to; examine the relationship between company income tax and electricity supply in Nigeria. Determine the relationship between value added tax and electricity supply in Nigeria. Evaluate the relationship between customs and excise duties and electricity supply in Nigeria. Determine the relationship between petroleum profit tax and electricity supply in Nigeria. Ex-post facto research design was employed. The population and sample size of the study Thus, the population of the study is the entire 36 states and the federal capital territory of Nigeria. Covering thirty-three (33) years (1990-2022) federal taxes and infrastructural development in Nigeria. The instrument of the study is secondary data. The formulated research questions were analyzed with descriptive statistics, while multiply regression analysis was adopted to test the hypotheses. The findings of the study were that; companies’ income tax has a significant effect on electricity supply in Nigeria. Also, Value added tax has a significant effect on electricity supply in Nigeria.  While, Custom and excise duties have a significant effect on electricity supply in Nigeria. Also, Petroleum profit tax has a significant effect on electricity supply in Nigeria. From the findings the following recommendations were made among others; the government should maintain policies and utilization of company income tax in improving electricity supply in the country. That value added tax should be sustained, hence, all identified administrative loopholes should be covered for VAT revenue to continue to contribute more significantly to macroeconomic development of the country. In addition to the electricity supply developments, the Government should continue to properly channel Custom and excise duties money towards human developments. From the findings of the study, the researchers believe strongly that federal government should emphasize on the rule of law in curbing corruption inherent in our education tax in order to improve macroeconomic performance. Adequate and competent independent authorities should supervise government petroleum profit tax in order to achieve improved economic growth in gross domestic product and human development indexes. The government should maintain policies and utilization of CIT on infrastructural development already in use.    Government should increase in the number of goods and services on the VAT list to account for more sectors that have become more productive since 1994. For instance, pharmaceutical products, petroleum products, renewable energy, downstream gas utilization. This is to should ensure that revenue from VAT should not only have impact but should be perceived to impact positively on physical macroeconomic development of Nigeria.