IMPACT OF TAX REVENUE AND ACCOUNTABILITY ON SUSTAINABLE ECONOMIC DEVELOPMENT IN NIGERIA

IMPACT OF TAX REVENUE AND
ACCOUNTABILITY ON
SUSTAINABLE ECONOMIC
DEVELOPMENT IN NIGERIA
Anisiuba, Chika Anastesia
Department of Accountancy
University of Nigeria, Enugu Campus
chika.anisiuba@unn.edu.ng
&
Ezeaku, Hillary Chijindu
Department of Banking and Finance
Caritas University, Enugu
gijindu@gmail.com
&
Amaeshi, Kenneth
Business School
University of Edinburgh, UK
kenneth.amaeshi@ed.ac.uk
Accounting and Finance Research Association
ABSTRACT
Unprecedented collapse in crude
oil/commodity prices occasioned by the
COVID-19 pandemic has positioned Nigeria
economy in a dwindling situation which has
made the government to resort to external
borrowing and tax revenue drive as the
means to sustainable economic
development. Tax revenue is globally seen
as the essential aspect of government
revenue with potentials of facilitating
government fiscal policy implementation
and sustaining economic development of a
nation. However, there is a general
consensus that there exists a relational
fiscal/social contract between the
government and the citizens as a result of
taxes being charged on the citizens. This
social contract makes government to be
accountable to the citizens on the tax
revenue usage. It is obvious that social
contract is strengthened and sustained by
accountability relations between the parties
involved, but what is not certain is its effect
on sustainable economic development of a
nation. As a result of this s paper examines
the impact of tax revenue and accountability
on sustainable economic development in
Nigeria. To carry out this study, this paper
utilized ex-post factor research design.
Secondary data were obtained from
ICTD/UNU-WIDER Government
Revenue Dataset 2020 and the World
Bank Development Indicator for the
period 1999-2019 and analyzed using
regression analysis and error correction
approach. The study found that
institutional quality indicators were both
negatively and significantly associated
with the growth rate of gross domestic
product per capita (GDPPCGR). This
implies that quality of institutions
including accountability have not helped
to improve or enhance sustainableBook of Abstract
economic development as far as tax
revenue generation is concerned. The
researchers recommend that government
should ensure that the social contract with
the citizens is strengthened and sustained
through transparency and good public
governance with the citizens’ wellbeing in
mind. They should also ensure that tax
revenue as well as fiscal accountability is
prioritised for the attainment of
sustainable economic growth and
development.
Keywords: Tax revenue, accountability,
sustainable economic development,
institutional quality, gross domestic product
per capita

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