Impact of Tax-based Revenue on Economic Development in Nigeria, 1999 to 2023

This research measures the contributory impact of Tax-based revenue on economic development in Nigeria, 1999 to 2023, with a specific focus on the nuanced dynamics of oil-based tax (OBT), non-oil-based tax (NOBT), and aggregate tax revenue (ATR). Leveraging comprehensive data extracted from the Central Bank of Nigeria's Statistical Bulletin and Federal Inland Revenue Service (FIRS) database, the study employs the Autoregressive Distributed Lag Model (ARDL) with Gross Domestic Product Growth Per Capital (GDPPC) as the outcome variable. The empirical analysis supports a significant and positive impact of non-oil-based tax revenue on GDPG while the oil-based tax shares no significant impact on economic development. Also, aggregate tax revenue (ATR) was found to negatively but significantly impact on economic development. The study recommends the adjustment of the tax system to address the developmental constraint on investment and consumption posed by taxation while optimizing the benefits that accrue from an efficient and good tax system.