EFFECT OF COLLECTED TAX REVENUE ON STRUCTURAL GROWTH BREAK PERIOD IN NIGERIA ECONOMY

The objective of the study targets to evaluate the effect of tax revenue on economic growth of Nigeria and also to examine the effect of tax revenue on each of the identified structural and administrative breaks change in Nigeria. Time series data of Real Gross Domestic Product (RGDP), Personal Income Tax (PIT), Petroleum Profit Tax (PPT), Company Income Tax (CIT), Value Added Tax (VAT), Custom and Excise Duties Tax (CED) were collected from 1970 to 2020. Autoregressive Distributed Lag Model (ARDL)/Bounds testing to co-integration, OLS and Chow test were used to analyse the data. From the study, it was revealed that there is significant impact of different taxes on economic growth during the period under review and there is presence of structural breaks change effect in the Nigerian economy as regards the undergoing structural and administrative changes in tax system. The study therefore recommends that administrative mechanism of government taxation be strengthened in order to reduce the several leakages. Also, government should endeavor to subject any policy to reality test before such policy is being enforced, as there is a direct impact of government policies to tax revenue generation in any particular time in the economy. Finally, government should harness effectively personal and corporate income taxes in Nigeria by ensuring that all medium scale businesses be listed or at least register with Corporate Affairs Commission which will increase the tax ratio and improve tax revenue collection in Nigeria.