EFFECTS OF TAX REVENUE ON INFRASTRUCTURAL DEVELOPMENT IN NIGERIA

This study investigated the effect of taxation on infrastructural development in Nigeria. The Ex post facto research design was adopted for the study. The Central Bank of Nigeria (CBN) and Federal Inland Revenue Service (FIRS) was chosen for the purpose of the study, the data used in the study was obtained majorly from secondary sources. The research employs quantitative method of data analysis, it was done in four folds. Firstly ,the descriptive analysis was performed using the mean, maximum, minimum, skewness, kurtosis and the probability of jarque-berra statistics. The result of the regression analysis was done using e-view 9.0 reveals petroleum profit tax and customs and excise duties were not statistically significant at 5% level of significance, this means that irregular fluctuation in this revenue did not allow for significant contribution to gross fixed capital formation. Hence infrastructural development expected, in the same vein corporate/company income tax has significant effect on infrastructural development during the period under review. This can be attributed to the continuous and steady increase in the value of revenue from this area. The study concludes that federally collected revenue has significant role to play in government decision to invest in infrastructural development. The study hereby recommends that, there should be stringent penalty imposed on any individual or corporate body who indulge in any form of tax malpractices irrespective of states and efforts should be intensified in tax collection and judicious administration of tax revenue by the government.