Taxation is mostly believed to play an important role in promoting economic growth and development. Unfortunately, in today’s Nigeria, economic development is nothing to write home about. This shortcoming is traceable to the problem of poor administration, inadequate tax planning and tax payment, inappropriate tax laws and decrees, corruption among tax officials and to mention, but few. However, the objective of this research study is to examine and appraise the impact of tax, as an instrument of fiscal policy in the development of Nigeria economy, with a view of providing a solution to the above-mentioned deficiencies. The period being reviewed spans from 1990 to 2000, while using Lagos State Government; as a case study. For clarity and simplicity, the research work is divided into five major parts; tagged chapters. The first chapter introduces the research topic and state clearly the purpose and significance of the study, the historical background of taxation in Nigeria, scope, plan, and research questions and hypothesis of the study.

Chapter two looks at the Nigerian tax system in general, it also gives a bird view of the concepts of fiscal policy, its types, objectives, nature and forms of taxes. It explains in detail the recent performance of Value Added Tax in Nigeria, revenue allocation and sharing formula of the proceeds from VAT and tax administration in the 21st century Nigeria; Problems and prospects, and also mentioned, is the taxing power and tax jurisdiction in totality.

Chapter three covers the research subjects, method and procedure used in carrying out this research. The population, as it relates to this research study, covers the Lagos State environs; spreading across both the private and the public sector, including the self-employed. However, the sample size of 25 respondents was randomly picked across the sectors of the economy, and questionnaires were optioned out to them to get the necessary information relevant for this study. The chapter four talks about the data analysis and as such, the data collected were tested against formulated hypothesis with the use of the non-parametric technique, called chi-square to evaluate the societal views on the measures, achievements and shortcomings of taxation policies in Nigeria.

The last chapter expatiates on the findings, conclusions and the suggestion. The research shows that problem to tax implementation does not lie in the nature of the tax policy itself; but in the number of multiple causes such as; the confusing nature of the tax laws and decrees which are always subjected to inconsistent amendments; it was also observed that the way the tax revenue is being managed by the authority in charge has created a negative impression in the minds of tax revenue is being managed by the authority in charge has created a negative impression in the minds of taxpayers. The corrupt attitude of the tax, also noticed, was the level of illiteracy of most of the taxpayers and yet, the non-scientific culture records keeping, which has inhibited their level of understanding as to what type of taxes are under what tax laws or decrees. And others like problems, many to mention in this abstract.

In spite of the above findings, it is however, suggested that in Nigerian tax system wants to meet the above challenges if it is to ensure a dynamic economy that is healthy, buoyant and vibrant, the following recommended reforms must adherely be followed. First and foremost, there must be a need for openings and accountability which gives room for publicly declarations of special levies collected over the years and any disbursements made on the yearly basis, also, there must be a need for professionalism within the tax system as this will enable to measure up to standards. There must also be need for public enlightenment on tax education. This will help in gaining compliance on the part of ignorant tax-payers. And lastly, information Technology need to be introduced into the administration of taxes in the tax environment. Obviously, without any doubt, this research work will be found helpful to any person who wants to have either, the general and specific knowledge of taxation and fiscal policies or appraises the standards of Nigerian tax system.







Table of content


1.1 Introduction

1.2 Statement of the problem

1.3 Purpose of the study

1.4 Significance of the study

1.5 Research questions

1.6 Hypothesis

1.7 Scope of the study

1.8 Limitation of the study


2.0 Literature review

2.1 Tax policy and Nigeria

2.2 The concept of fiscal policy

2.3 The nature of tax

2.4 Importance of taxation in Nigeria

2.5 General Outline of the Nigerian Tax system

2.6 The performance of vat in Nigeria

2.7 Taxation and resources allocation in Nigeria

2.8 Taxation power and tax jurisdiction


3.0 Research methodology and design

3.1 Introduction

3.2 Re-statement of research questions

3.3 Re-statement of Hypothesis

3.4 The study population

3.5 Sampling technique and size

3.6 Research instrument

3.7 Method of data collection

3.8 method of data analysis


4.0 Analysis and Interpretation of data

4.1 Empirical analysis

4.2 Summary of findings and policy implications



5.0 Summary, conclusion and recommendation

5.1 Summary

5.2 Conclusion

5.3 Recommendations

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