TAX REVENUE MOBILIZATION AND SUSTAINABLE DEVELOPMENT IN NIGERIA
This study examined the effect of tax revenue mobilization on sustainable development in Nigeria proxied by the Sustainable Development Expenditure Ratio. The study adopted a quantitative research design using ex-post facto methodology and relied on secondary annual time-series data spanning 1994 to 2025. Data were sourced from the Central Bank of Nigeria Statistical Bulletin, Annual Reports, and the World Development Indicators. The Auto regressive Distributed Lag model was employed to estimate both short-run and long-run relationships among mixed-order integrated variables. The study revealed that Value Added Tax, Customs and Excise Duties, Petroleum Profit Tax, and Capital Gains Tax had significant positive effects on Sustainable Development Expenditure Ratio in both the short-run and long-run periods. Conversely, Company Income Tax (both the short run and long run, Stamp Duties Tax, and Personal Income Tax had no statistically significant effect on Sustainable Development Expenditure Ratio across both time horizons. The significant negative coefficient of the error correction term confirmed a stable long-run equilibrium, indicating that short-term deviations in tax revenue components adjust rapidly toward steady-state Sustainable Development Expenditure Ratio. The study concluded that tax revenue mobilization has a mixed but generally positive effect on sustainable development in Nigeria, with only selected tax components effectively contributing to development expenditure. The study recommended improved tax administration, enhanced compliance mechanisms, and strengthened fiscal governance to maximize the developmental impact of tax revenue. The study has contributed to knowledge by providing empirical evidence on the heterogeneous effects of tax revenue components on sustainable development expenditure in Nigeria and offers policy-relevant insights for fiscal sustainability.
Keywords: Revenue mobilization, Company Income Tax, Value Added Tax, Customs and Excise Duties, Petroleum Profit Tax, Capital Gains Tax, Stamp Duties Tax, Personal Income Tax and Sustainable Development Expenditure Ratio
