Value Added Tax and Performance in Nigeria Economy

Student: Oluwanifemi Mercy Kuye (Project, 2025)
Department of Accounting and Finance
Elizade University, Ilara-Mokin, Ondo State

Abstract

This study evaluates Value Added Tax and the performance of the Nigerian Economy. The study
employed a quantitative approach using secondary data extracted from the annual report of
selected public parastatals. The data collected was analyzed using descriptive statistics and the
hypothesis were tested using regression analysis. The study employed multiple regressions. The
pre-test result using descriptive statistic, regression analysis and correlation analysis shows that
all variables are normally distributed. The result revealed that GDP growth is positively
correlated with VAT revenue meaning better tax revenue, Inflation rate has a coefficient of 0.57
indicating that a unit increase the inflation rate will lead to 0.57 that is 57% increase in VAT
and which is significant at 5% level of significant. The coefficient of exchange rate is 0.85, the
result indicated that increase in exchange rate will lead to 85% increase in VAT which is
statistically significant at 5% level of significant. This study concluded that the Value Added Tax
has significant effect on the performance of the Nigerian economy. The study thus recommended
that VAT administration be strengthened and campaign awareness should be launched to
educate citizens and businesses on the importance of VAT and how it contributes to national
development

Keywords
value added performance nigeria economy
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