Taxation and Industrial Development: The Nigerian Industrial Sector Analysis

The research is a study on taxation and industrial development with analysis particular to the Nigerian economy. It studied the impact of three taxes such as value added tax, company income tax and excise duties in addition to institutional quality to see how they affect industrial sector growth in the country. The study covered from 1999 to 2023. The ARDL model was used to analyze the time series data obtained from World Bank data bank, National Bureau of Statistics (NBS), Central Bank of Nigeria (CBN) and other reliable data sources. The model was estimated and the findings revealed that VAT had positive and significant impact on industrial sector growth both in the short and long run. CMIT and EXDT had negative and significant influence on industrial sector growth in the short run. CMIT had a positive but not significant in the long run while EXDT was negative and significant. The first lag of ISG was positive and significant in the short run but negative and significant in the long run. First lag of CMIT was positive and significant in the short run but positive and not significant in the long run while institutional quality had negative and insignificant impact on industrial sector growth both in the short and long run period. The study recommended low tax regulation, reshaping governance style and control of corruption to a bearable level among others.