Relationship That Exists Between Value-Added Industries Contributions, Institutional Governance, And Macroeconomics Components on Realization of Tax Revenue in Nigeria
DOI:
https://doi.org/10.59890/ijebma.v8i2.3534Keywords:
Igcs, Mcs Realization of Tax Revenue, VAIC’sAbstract
The study investigates the relationship that exists between value-added industries contributions (VAICs), institutional governance components (IGCs) and macroeconomic components (MCs) on Nigeria's tax revenue realization, utilizing time series data spanning 1998–2023. Descriptive and inferential statistics are employed in this investigation. The study found that there is positive effect that exists between the independent variable GEF and dependent variable RTR. This implies that, if Government is effective, then realization of tax revenue will increase drastically by 1.72. The negative effect of VAICs on RTR, implies that with the introduction of VAICs, there will be reduction in non-realization of tax revenue by 0.08. This is an indication that additional value added from industries and governance as well as macroeconomic factors has a substantial effect on realization of tax revenue in Nigeria. The study therefore concluded that government effectiveness and inflation have a significant and positive effect on realization of tax revenue for federally collected revenue in Nigeria. The study therefore recommended that relationship between value added industries contributions, IGCs, and MCs, on realization of tax revenue in Nigeria will help to better realize their impact and improve policy formulation
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