TAX REFORMS AND REVENUE GENERATION IN NIGERIA; A LONGITUDINAL ANALYSIS

TAX REFORMS AND REVENUE GENERATION IN NIGERIA; A LONGITUDINAL ANALYSIS

CHAPTER ONE
BACKGROUND OF THE STUDY
According to the report of the presidential committee on National Tax policy (2008), Tax policy formulation in Nigeria is the responsibility of the Federal inland Revenue Services (FIRS), Customs, Nigerian National Petroleum Corporation (NNPC), National Population Commission (NPC), and other agencies but
under the guidance of the National Assembly i.e. the law making body in Nigeria (Presidential committee on National tax policy, 2008). Suice it to say that if there must be any effective implementation of the Nigerian tax system or attainment of its goal, the use of the national tax policy document remain absolutely essential. According to the Presidential Committee on tax policy (2008), “Nigeria needs a tax policy which does not only describe the set of guiding rules and principles, but also provide a stable point of reference for all the stakeholders in the country and upon which they can be held accountable. James and Nobes (2008) decried the inability of tax policy to meet up with efficiency and equity criteria against which it is being judged. It was further noted that tax
policy is continually subjected to pressure and changes which most time does not guarantee outcome that are in line with the overall goal (James and Nobes 2008). Unfortunately, most policy changes in Nigeria are without adequate consideration of the taxpayers, administrative arrangement and cost plus the existing taxes. This has in no small measure hindered the effective implementation and goal congruence of the nation’s tax system. Citing (Bird and Oldman 1990), James and Nobes (2008) stated as follows “

STATEMENT OF THE PROBLEM
The problem confronting this research is to determine the nature of tax reforms and its impact on revenue generation in Nigeria, applying a longitudinal analysis.

RESEARCH QUESTIONS
1 What constitute tax reforms in Nigeria?
2 What is the eectiveness
of tax reform towards revenue generation in Nigeria?

OBJECTIVE OF THE STUDY
1. To determine the nature of tax reform in Nigeria
2. To determine the effectiveness of tax reform policy towards revenue generation to government

SIGNIFICANCE OF THE STUDY
The study shall analyze tax reform policy and determine its effectiveness towards revenue generation to government. It shall also serve as a source of information on issues of tax reforms in Nigeria

STATEMENT OF HYPOTHESIS
H0 Tax revenue generation in Nigeria is high
H1 Tax revenue generation in Nigeria is low
H0 challenges to tax revenue generation in Nigeria is low
H1 Challenges to tax revenue generation in Nigeria is high

TAX REFORMS AND REVENUE GENERATION IN NIGERIA; A LONGITUDINAL ANALYSIS