TO GET THE COMPLETE JOURNAL/THESIS FOR TOPIC BELOW,
CALL: 08168759420, 08068231953
WHATSAPP: 08137701720
THE IMPACT OF PETROLEUM PROFIT TAXES ON ECONOMIC GROWTH IN NIGERIA (1981-2020)
Abstract
The primary function of a resilient oil and gas tax system is to raise enough revenue to finance essential government expenditure that will raise the standard of living, promote sustainable firms and create jobs of the future for economic growth. This study seeks to determine the impact of petroleum profit taxes on economic growth in Nigeria from 1981 to 2020. An expo-facto research design with two (2) objectives and one (1) baseline theory anchored this empirical paper. The population of the study is Nigeria with a tax history of forty years from 1981 to 2020. The study adopted an interval scale of measurement and the preceding year basis of sampling, with a sample size of nine (9) years from 2010 to 2018. The source of data was secondary, obtained from the Central Bank of Nigeria, National Bureau of Statistics, OECD Statistics, and World Bank Group. The study adopted univariate analysis and bivariate analysis for data analysis with MS Excel 2019 and SPSS Statistics 26. The study found that PPT has no significant relationship on PCI and that PPT has no significant relationship with JOB. The study concluded that: given high levels of oil price stability and production boom, petroleum profit tax might not significantly contribute to per capita income and the employment rate for economic growth, with a correlation of less than 10%. The study recommended that government should reduce the tax incentives granted to petroleum companies in Nigeria, and increase the tax rate of non-petroleum companies, which will increase government revenue from petroleum taxes, during times of oil price volatility and production cuts.
Keywords: petroleum profit tax, economic growth, employment rate, per capita income, oil price volatility, oil production cuts,