No abstract

This paper empirically investigated the impact of value added tax (VAT) on economic growth in Nigeria from 1994–2018. This was done against the background that VAT as an indirect tax was introduced by the Federal Government of Nigeria in 1993 to replace sales tax with the sole aim of increasing the revenue base of government and make funds available for developmental purposes. The aim of the study is to examine the effect of value added tax on economic growth in Nigeria and determine the impact of other tax revenues particularly, custom and excise duties on economic growth in Nigeria. Thus, secondary data on GDP, VAT revenues, custom and excise duties were sourced from CBN statistical bulletin. Also, ARDL technique was used to analyze data. The variables were subjected to ADF unit root test prior the ARDL and found to be stationary. The ARDL co-integration test showed that there is a long run association amongst the variables. The ARDL short run result showed that the value of VAT has a positive relationship with economic growth in Nigeria. Also, custom and excise duties revenue positively impacted on economic growth in Nigeria. Hence, it was concluded that Value Added Tax (VAT) as an indirect tax system in Nigeria has direct relationship with economic growth in Nigeria since its inception in 1994. It has contributed to the total revenue of the nation as a result of reduction in tax evasion. Based on the findings, the paper recommended that government should put in place adequate measure to ensure that revenue generated from VAT is effectively utilized to develop and grow the economy in order to better the lives of the citizenry.

The paper examined crude oil and the Nigeria naira exchange rate. Crude oil is a natural resource found beneath the water table usually in the delta region or in the sea and ocean. Oil as a hydrocarbon was first found and drilled in Oloibiri in Bayelsa State in 1956, and has become the basic source of Nigeria’s foreign earnings and therefore its foreign exchange. Exchange rate is the value of another country's currency compared to that of your own. But the ups and downs in the price of crude oil has put the Nigerian economy at the edge of the sword. Moreover, since the announced global slump in oil prices, governments at all levels (federal, state and local) have had hard times meeting their expenditure needs. Also, the weak value of the naira in relation to the US. Dollar has not help the country economy. This is because, while the stream of income remained the same, one now need more Naira to pay for some commodities abroad. Also, any drop in crude oil prices tends to lead to a weakened Naira against the dollar on the black market. Therefore, in order to have a chance at developing, a country needs to maintain a competitive exchange rate that is not overvalued.

Economic development may be achievable through efficient and effective allocation of resources. In same vein, effective and cost effective resource allocation can only be powered by an equally ‘effective and transparent’ procurement process or system. Accordingly, the PUBLIC PROCUREMENT ACT 2007, was established to among other reasons, midwife an effective procurement system for the country that will ensure value for money for resource allocation. Annual capital expenditure provision in national budgets for the last five years had averaged about 24.7%. Records available from the Bureau of Public Procurement (midwife of the Act) indicated that the South-South geo-political zone did enjoy (probably not commensurate with her resource contributions) part of these national budgetary allocations. Analysis of same records, unfortunately showed that the intent to achieving value creation and development in the area could not have been achieved, for many reasons including, inadequate provisions and allocations, poor conception/implementation/execution, inadequate monitoring for the referenced restive region. Given the findings above, it is therefore suggested amongst others that there should be establishment of strong and compelling institutions, amidst the pervading corruption that has become Nigeria socio-cultural value. Also, there should be domestication of public procurement law by all the 36 states and the entire 774 local governments in Nigeria. All these will contribute towards an effective creation of ‘value for money’ in resource allocation for desired regional economic development.