IMPACT OF TAXATION ON REVENUE GENERATION IN NIGERIA (EMPIRICAL STUDY ON PIT, PPT, CIT AND VAT)

This study examines the impact of taxation-specifically value added tax, personal income tax, company income tax and petroleum profit tax- on revenue generation in Nigeria. Taxation plays a fundamental role in nation-building, serving as a sustainable source of revenue essential for economic stability, public service delivery, and national development. The study explores the relationship between these major tax types and the federal government's total revenue, assessing their individual and collective contributions to fiscal sustainability. The study adopts an ex-post facto research design using secondary time series data covering the period from 2015 to 2024. Data were sourced from the Federal Inland Revenue Service (FIRS), Central Bank of Nigeria (CBN), and the National Bureau of Statistics (NBS). A multiple regression analysis technique was employed to evaluate the impact of the independent variables (VAT, CIT, PPT, and PIT) on the dependent variable (government revenue). The study did not apply probability-based sampling techniques due to its reliance on national fiscal data but ensured accuracy by using official, published government statistics. Findings from the analysis reveal that VAT and CIT have a statistically significant and positive impact on revenue generation, indicating their importance as stable and reliable sources of government income. PPT, while historically dominant, showed volatility due to oil price fluctuations, affecting its consistency as a sustainable revenue source. PIT showed modest but growing contributions, hindered largely by informal sector dominance and weak enforcement mechanisms. The study concludes that taxation is a viable and sustainable tool for revenue generation in Nigeria if properly harnessed. It recommends enhanced enforcement, tax base expansion, digital tax systems, and greater transparency to improve compliance. Ultimately, taxation must be positioned not only as a fiscal tool but also as a pillar of economic governance and national development.