Value-Added Tax Revenue Transfers and Regional Social Development: Evidence from Nigeria

Author:

Omodero Cordelia OnyinyechiORCID

Abstract

The gross social underdevelopment in Nigerian communities and villages is the underlying reason for investigating the effectiveness of VAT revenue transfers to states and local governments in providing the necessary social and community development services to meet the needs of the entire populace. This study examined the impact of VAT revenue devolution on social development in Nigeria from 1995 to 2021, with a focus on community welfare, making use of secondary data retrieved from the Central Bank of Nigeria’s statistical archive. In analyzing the data, we used an ex post facto research design and a cross-sectional econometric approach. The study examined the relationship between variables and included a trend analysis, a causality evaluation, and a regression analysis to determine the impact of VAT transfer on social welfare in Nigeria. According to the findings, VAT transfer to states has a positive relationship with social development, and the effect is both significant and beneficial at the 0.01 level. Local governments’ share of VAT collection, on the other hand, has an intangible positive effect on social development at the 0.05 degree of importance. As a result, we concluded that VAT revenue autonomy is now required in Nigeria. The study strongly advocates for the total transfer of revenue receipts to states and local governments for the benefit of society.

Funder

Covenant University Centre for Research, Innovation and Discovery

Publisher

MDPI AG

Subject

Management, Monitoring, Policy and Law,Renewable Energy, Sustainability and the Environment,Geography, Planning and Development,Building and Construction

Reference58 articles.

1. Akinyemi, A. VAT Controversy: The Need to Avoid Fiscal Anarchy. Premium Times. 2022.

2. Ogunmupe, B. Why States Should Collect VAT in Nigeria. Guardian. 2022.

3. Omojoye, S. Staying in the Lane: VAT Dispute Is Constitutional, Not About States’ Capacity to Collect VAT. The Cable. 2021.

4. Wong, M.C.S., and Yap, R.C.Y. Social impact investing for marginalized communities in Hong Kong: Cases and Issues. Sustainability, 2019. 11.

5. Effect of apportioned federal revenue on economic growth: The Nigerian Experience;Omodero;Int. J. Financ. Res.,2019

同舟云学术

1.学者识别学者识别

2.学术分析学术分析

3.人才评估人才评估

"同舟云学术"是以全球学者为主线,采集、加工和组织学术论文而形成的新型学术文献查询和分析系统,可以对全球学者进行文献检索和人才价值评估。用户可以通过关注某些学科领域的顶尖人物而持续追踪该领域的学科进展和研究前沿。经过近期的数据扩容,当前同舟云学术共收录了国内外主流学术期刊6万余种,收集的期刊论文及会议论文总量共计约1.5亿篇,并以每天添加12000余篇中外论文的速度递增。我们也可以为用户提供个性化、定制化的学者数据。欢迎来电咨询!咨询电话:010-8811{复制后删除}0370

www.globalauthorid.com

TOP

Copyright © 2019-2024 北京同舟云网络信息技术有限公司
京公网安备11010802033243号  京ICP备18003416号-3