Influence of Voice and Accountability on Tax Revenue in Nigeria
- April 20, 2019
- Posted by: RSIS
- Category: Social Science
International Journal of Research and Innovation in Social Science (IJRISS) | Volume III, Issue IV, April 2019 | ISSN 2454–6186
Influence of Voice and Accountability on Tax Revenue in Nigeria
N. S. Awotomilusi1, Prof. I. R. Akintoye2, Dr. F. F. Adegbie3
1Ph.D. Student, Babcock University, Ilisan Remo, Ogun State, Nigeria
2,3Babcock University, Ilisan Remo, Ogun State, Nigeria
Abstract:-Tax revenue is an essential aspect of government revenue considered as the wheel of economic development of a nation and it facilitates the implementation of the fiscal policy of the government. Quite a few reforms have been carried out in Nigeria tax system to improve the tax revenue but yielded little effect as the country still experiences over-dependence on oil revenue. This study explored another alternative that may influence and improve tax revenue without necessarily reviewing tax rate that may adversely affect taxpayers’ purchasing power in the long run. Several studies were carried out on the impact of institutional factors on tax revenue in developing nations using panel data analysis without specific effect, but it seems not many have been conducted in Nigeria. The study evaluated the influence of voice and accountability as institutional factor jointly with economic factors which are industry share in GDP, the share of Agriculture in GDP, trade openness and inflation held as control variables on tax revenue in Nigeria.
The ex-postfacto research design was adopted for this study. The geographical coverage of the study is Nigeria. Secondary data were obtained from the reports of Federal Inland Revenue Service, Political Risk Services of International Country Risk Guide and the World Bank Development Index for a period covering 1984-2017 using purposive sampling technique the study adopted descriptive and inferential (regression) statistics for data analysis.
The study found that significant relationship existed betweenvoice and accountability and tax revenue (β = 0.0413; p< 0.05; t(34) = 2,54; R2= 0.99 ) in line with a priori expectation. There was also a significant positive relationship between control variables. The researcher recommended that government should improve on voice and accountability to improve tax revenue through voluntary compliance to tax laws
Keywords: Voice and Accountability, Tax Revenue, Institutional factors, Economic factors, Nigeria
