TAX REVENUE AND MACROECONOMIC PERFORMANCE IN NIGERIA

Abstract

This study examined the relationship between tax revenue and macroeconomic performance in Nigeria. The correlational research design was employed and secondary data was sourced from the Nigerian economy for twenty-one years (2002-2022) from the reports of the Central Bank of Nigeria statistical bulletin, the National Bureau of Statistics and the Federal Inland Revenue Service. The Pearson correlation coefficient and multiple regression analysis were utilized with the aid of Stata12 software. The study revealed that Value Added Tax and Companies Income Tax significantly related with employment generation.  Also, VAT and CIT have a significant relationship with GDPG whereas tax rates had an insignificant relationship. Based on the findings, the study concluded that there is a significant relationship between Tax Revenue and Macroeconomic performance in Nigeria. It was recommended that policymakers in Nigeria should widen the tax base to generate more revenue to provide funds for investment in critical socioeconomic sectors, as this will enhance the contributions of tax revenue to macroeconomic performance in Nigeria.