AN ANALYSIS OF TAXATION AND REVENUE GENERATION IN NIGERIA

Abstract

The Nigerian tax system is dominated by returns from the sale of crude oil as the revenue from petroleum tax now hydro-carbon tax is within the jurisdiction of the Federal Government; it has on the average accounted for about 90% of overall national revenue. This is of course shared according to an approved revenue sharing formula between the three tiers of Government. This paper contains primary and secondary sourced materials, such as laws, statutes, and other resource materials. This paper found out that a tax system can provide the Government with effective and flexible instruments for the day-to-day management of the economy. Hence taxation can be used to achieve specific economic objectives of a nation. For example, capital allowances can be used as a means of stimulating the manufacturing sector by increasing the value-added content of domestic output in some key industries in Nigeria. It is recommended that Government at all levels should have the political will and should also ensure effective assessment, collection and utilization of tax revenue.