VALUE ADDED TAX, REVENUE GENERATION AND GROWTH IN NIGERIA

Abstract

This study examined the effect of VAT on Nigeria's revenue generation and economic growth. The study used an ex-post facto research approach and gathered data from the Central Bank of Nigeria (CBN) statistical bulletin, Federal Inland Revenue Service reports, the Federal Office of Statistics, and the Federal Ministry of Finance for a period of twenty-five (25) years (1994-2018). The data was evaluated using the regression (i.e., OLS) approach, and the result indicated that the impact of VAT on economic growth, tax revenue generation in Nigeria was positive and significant. The study suggests that government should establish appropriate tax management to increase revenue, and that better economic policies and macroeconomic changes be implemented by the government.