Petroleum Profit and Excise Duties Taxes as Determinants of Economic Development in Nigeria

Abstract

This paper investigated the extents to which petroleum profit and excise duties taxes serve as determinants of Nigerian economic development. Ex-post facto research design was used and secondary was obtained from the Central Bank of Nigeria statistical bulletin from 1993-2023. Data obtained were analyzed using autoregressive distributed lag and error correction mechanism statistical tools. Findings indicated that while petroleum profit tax significantly negatively determines Nigerian economic development (gross domestic product per capita), excise duties tax significantly positively determines Nigerian economic development (gross domestic product per capita). The implications of the findings are that while excise duties tax is adequately managed, petroleum profit tax is inadequate managed, hence the reason for the negative on Nigerian economic development. On the basis of the finding, the study recommends among others of the need to strengthen the supervision and collection of petroleum profit tax and the efficient management of profits from petroleum companies. More so, there is the need to avert misuse/misallocation of revenues from petroleum profit tax in order to positively enhance Nigerian economic development.

Keywords

• economic development
• economic growth
• excise duties
• petroleum profit tax
• nigeria
• tax revenue