Journal of Finance, Governance & Strategic Studies

ASSESSING THE GROWTH IMPLICATIONS OF POST-2017 TAX REFORMS IN NIGERIA

THOMAS AYO BABARINDE, OLADELE JOHN AKINYOMI, ADEDOYIN TEMILADE AKINOLA, ENITAN OLUROTIMI OLURIN, SAMSON IDOWU OLADIPO

March 30, 2026

Citation

Journal of Finance, Governance & Strategic Studies , Vol. 9 (1) (2026) , pp. 31-40

Details

ISSN: 2714-2573
Published: March 30, 2026
Status: Published

Abstract

The paper explored how Nigerian tax reforms impacted her economy. It specifically, looked at value
added tax (VAT), petroleum profit tax (PPT), and company income tax (CIT) in the 2017 finance act. The paper utilised an ex post facto design, and used data from the annual pre-reform (2009 to2016)
and post-reform (2017 to 2024) obtained from the Central Bank of Nigeria Bulletins. Data were
analysed by applying the paired sample t-tests for pre and post reform differences, and multiple
regression was applied to ascertain the post-reform tax revenues impact on Nigeria’s gross domestic
product. The results obtained suggested a substantial rise in VAT revenue at post reform era, implying
an improvement in revenue generation from non-oil activities. On the other hand, the pre and post
PPT and CIT tax revenues were not statistically different. This suggests that the tax reform never
resulted in a rise in PPT and CIT tax inflow in Nigeria. The regression analysis revealed that the
post-reform VAT revenue adversely affected GDP. Company income tax was had a favourable and
substantial effect on GDP. While petroleum profit tax had an adverse and insignificant impact on
GDP. However, the result revealed that post-reform tax revenues F-stat = 242.322, & p < 0.05, significant impacted Nigeria’s GDP. The study settled that Nigeria’s 2017 tax reform supported her
economic growth. The study recommends strengthening non-oil tax and reducing over dependence on
petroleum tax inflow as a way of sustaining economic growth in Nigeria.