Saved in:
| Main Authors: | , , |
|---|---|
| Format: | Recurso digital |
| Language: | English |
| Published: |
Zenodo
2025
|
| Subjects: | |
| Online Access: | https://doi.org/10.5281/zenodo.20249367 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
Table of Contents:
- <p>This study examined the effect of public sector infrastructure investment on tax revenue in Nigeria, <br>focusing on three critical infrastructure categories: education infrastructure, energy infrastructure, <br>and health infrastructure The study adopted an ex-post facto research design grounded in positivist <br>research philosophy, utilizing quarterly time series data spanning over three decades 1990Q to <br>2024Q quarterly, sourced from the Central Bank of Nigeria Statistical Bulletins, Federal Inland <br>Revenue Service annual reports, and Federal Ministry of Finance appropriation documents. Prior <br>to estimation, the Augmented Dickey-Fuller (ADF) unit root test was conducted to examine the <br>stationarity properties of all variables. The results confirmed that all variables tax revenue, <br>education infrastructure, energy infrastructure, and health infrastructure were stationary at level, <br>denoted as I(0), with ADF statistics exceeding critical values at all conventional significance <br>levels. This uniform stationarity at level eliminated concerns of spurious regression and negated <br>the need for cointegration-based approaches, thereby justifying the adoption of the Ordinary Least <br>Squares (OLS) regression technique to estimate the effects of infrastructure investment proxies on <br>non-oil tax revenue as a percentage of GDP. The empirical results indicate that education <br>infrastructure has a positive and statistically significant effect on tax revenue, while energy <br>infrastructure also demonstrates a positive effect on tax revenue. Conversely, health infrastructure <br>exhibited a negative but statistically insignificant effect. The study concluded that public sector <br>infrastructure investment constitutes a significant determinant of tax revenue mobilization in <br>Nigeria, with energy infrastructure emerging as the most fiscally productive investment category. <br>Policy recommendations include prioritizing energy infrastructure investment for maximum fiscal <br>returns, sustaining education infrastructure spending for human capital development, reforming <br>health infrastructure investment strategy to address implementation challenges, and strengthening <br>tax administration to capture infrastructure-induced economic growth. </p>