NONOIL TAX REVENUE AND INFRASTRUCTURAL DEVELOPMENT IN NIGERIA.

Abstract

The study investigated the relationship between non-oil tax revenue and infrastructural development in Nigeria, employing an ex-post facto research design using historical data from 2000 to 2023. The population included key sectors of the Nigerian economy, such as the Federal Inland Revenue Service (FIRS), Central Bank of Nigeria (CBN), education, and health sectors. A purposive sampling technique was used to select annual observations from each year, resulting in 24 observations. Secondary data were collected, and data analysis involved descriptive statistics, Pearson’s Product Moment Correlation Coefficient, and Moderated Multiple Regression (MMR) using SPSS Version 25. The results revealed that the relationships between Value Added Tax (VAT) and both healthcare and education infrastructure were weak and statistically insignificant. However, Capital Gains Tax (CGT) showed moderate positive and statistically significant relationships with healthcare and education infrastructure. Government policy significantly moderated the relationships between non-oil tax revenue and both healthcare and education infrastructure. The study concluded that effective government policies are critical in maximizing the impact of non-oil tax revenues on infrastructural development. Recommendations include strengthening government tax policies, improving transparency in tax collection, and implementing targeted fiscal policies to enhance the efficient use of tax revenue for infrastructure growth in Nigeria.