CORPORATE TAX REVENUES ON GOVERNMENT CAPITAL EXPENDITURES IN NIGERIA

Abstract

The study examined the effect of corporate taxes on government capital expenditures in Nigeria. The study covered from 2009 - 2023. The specific objectives were to determine the effect of Company Income tax on capital expenditures in Nigeria, to examine the effect of Petroleum profit tax on capital expenditures in Nigeria and to ascertain the effect of National Information Technology development levy on Capital expenditures in Nigeria. The study adopted expost facto research design. The study data were sourced from Central Bank of Nigeria Statistical bulletin and National Beaus of Statistic. The stated model were analyzed with Unit root test, Johansen co-integration analysis for the stated model, Vector error correction mechanism (VECM). The findings revealed that company income tax has positive and nonsignificant effect on capital expenditures in Nigeria. Petroleum profit tax has positive and nonsignificant impact on capital expenditures in Nigeria. National Information Technology development levy has positive and significant effect on capital expenditures in Nigeria. In conclusion, effective utilization of corporate tax revenue can enhance economic growth in the country. It was recommended that government should strengthen the tax administration system to broaden the company income tax and embark on tax education to ensure voluntary tax compliance and also ensure that tax proceed are implement effectively to enhance economic growth in country.