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Nexus between resource-based tax revenue and economic well-being in Nigeria

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Journal of Accounting and Taxation2025https://doi.org/10.5897/jat2025.0648article
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0.50

What the paper says

This study investigates the impact of upstream petroleum tax revenue on gross domestic product (GDP) per capita in Nigeria, with a particular focus on whether resource-based taxation has translated into tangible improvements in citizens’ economic welfare. Given Nigeria’s heavy reliance on the petroleum sector—especially revenue from petroleum profit tax (PPT) and hydrocarbon tax (HCT)—this study critically examines the paradox of resource abundance and underdevelopment, often framed as the “resource curse.” Utilizing annual time series data from 1994 to 2023 sourced from the Federal Revenue, Central Bank of Nigeria (CBN), and National Bureau of Statistics (NBS) databases. The autoregressive distributed lag (ARDL) model was used to estimate both the short- and long-run effects of upstream petroleum taxes on GDP per capita. The study also includes company income tax (CIT) and value-added tax (VAT) as comparative fiscal instruments. Findings showed that while the effect of PPT on GDP per capita was not significant in the short run, its long-run impact was positive and statistically significant. The study concludes by recommending strategic diversification of revenue sources, improved tax administration, and better governance of petroleum revenues to drive inclusive and sustainable growth. Key words: Petroleum profit tax, hydrocarbon tax, gross domestic product per capita, upstream oil sector, fiscal policy, economic welfare, Nigeria, autoregressive distributed lag model.

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https://doi.org/https://doi.org/10.5897/jat2025.0648

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@article{a2025,
  title        = {{Nexus between resource-based tax revenue and economic well-being in Nigeria}},
  author       = {a b},
  journal      = {Journal of Accounting and Taxation},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.5897/jat2025.0648},
}

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Nexus between resource-based tax revenue and economic well-being in Nigeria

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.