Taxation and Sustainable Economic Development in Nigeria

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Authors: KINGSLEY- OWIE, Osagie Emmanuel and UAGBALE-EKATAH, Rosemary E.

Abstract

This study investigates the effect of taxation on sustainable economic development in Nigeria, focusing on tax compliance, tax policies, and tax revenue. Using a descriptive survey design, data were collected from 399 registered individual taxpayers and small- and medium-sized enterprises (SMEs) in Edo State through structured questionnaires. Multiple regression analysis was employed to assess the influence of taxation factors on economic sustainability. The findings reveal that improved tax compliance and increased tax revenue significantly contribute to sustainable economic development by enhancing revenue generation and funding essential public infrastructure and services. Conversely, existing tax policies were found to have no significant effect on sustainable economic development, largely due to poor implementation and lack of clarity. This study therefore concludes that efficient taxation positively affects sustainable economic development by ensuring stable revenue flows essential for national development. The study recommends policy reforms alongside strengthening tax compliance and revenue management to foster sustainable economic growth in Nigeria. These insights provide valuable guidance for policymakers and stakeholders aiming to align taxation with developmental goals.

Keywords: Sustainable Economic Development, Tax Compliance, Tax Policy, Tax Revenue

2025 - NIJAF - 17 - 101 KINGSLEY-OWIE - ET AL..pdf

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