THE MATRIX OF TAXATION ON THE ECONOMY: A CASE STUDY OF NIGERIA

Abstract

Taxation remains a central instrument for economic management, wealth redistribution, and social development. In Nigeria, the structure, administration, and behavioral effects of taxation create a complex matrix influencing both microeconomic and macroeconomic outcomes. This paper critically examines the matrix of taxation on the Nigerian economy, focusing on the interrelationships between tax policy, economic growth, compliance behavior, and fiscal sustainability. Using descriptive analysis and literature-based insights, the study reveals that while taxation serves as a major revenue source, the Nigerian tax system is burdened by inefficiency, multiplicity of taxes, and weak institutional capacity. The paper concludes that reforming the tax matrix requires not just policy alignment but also digital integration, fiscal transparency, and inclusive tax governance to ensure equitable and sustainable growth.