Effects of Institutional Governance Components and Realization of Tax Revenue in Nigeria

Onaolapo Adekunle Rahman; Raji Mojeed Gbolagade

doi:10.59890/ijefbs.v3i2.7

Authors

Onaolapo Adekunle Rahman Ladoke Akintola University of Technology, Nigeria
Raji Mojeed Gbolagade The Polytechnic Ibadan, Nigeria

DOI:

https://doi.org/10.59890/ijefbs.v3i2.7

Keywords:

Voice and Accountability (VAA), Political Stability (PSAV), Government Effectiveness (GEF), Regulatory Quality (RGQ), Rule of Law (ROL), Corruption (COR)

Abstract

The study investigates the effects of institutional governance components on realization of tax revenue in Nigeria, using time series data that cover periods from 1998 to 2023. The empirical techniques used in this study are descriptive and inferential statistics. The study found that many of institutional governance variables are not statistically significant due to data outliers, as indicated by their high p-values: (VAA (-1) p-value of 0.3991> 0.05); PSAV (-1) p-value of 0.6092 > 0.05); GEF (-1) p-value of 0.3493 > 0.05); RGQ (-1) p-value of 0.1344 > 0.05); ROL (-1) p-value of 0.6005 > 0.05); COR (-1) p-value of 0.8399 > 0.05). The overall model is statistically significant with p-value of 0.001795 < 0.05, suggesting that the independent variables collectively have a significant impact on the dependent variable. The study concludes that IGCs have significant influence on Nigeria’s realization of tax revenue. The findings affirm that IGCs should be central considerations in policy-making to optimize tax revenue realization in Nigeria.

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