IIARD International Institute of Academic Research and Development

JOURNAL OF ACCOUNTING AND FINANCIAL MANAGEENT (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 11 NO. 6 2025
DOI: 10.56201/jafm.vol.11.no6.2025.pg117.128

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Federal Government Indirect Tax Revenue and Income Distribution in Nigeria (2000-2023)

Ezejiofor, Raymond A, Ikilidih Joy N, and Analikwu, Maureen I

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Abstract

The examined the effect of federal government indirect tax revenue on income distribution in Nigeria from 2000 -2023, using value added tax, and custom and excise duty tax as the independent variables. Ex Post Facto research design was adopted for the study. Data were extracted from federal Inland Revenue services and World Bank annual reports. Regression analysis was used to test the hypotheses. The results revealed that value added tax and custom and excise duty tax significantly affected income redistribution in Nigeria. Conclusively, there is a significant effect between indirect tax revenue and income redistribution in Nigeria. The study recommended among others, that to uphold the significant effect of VAT, Nigerian government should avoid distortions like tax cascading associated with alternative commodity taxes.

keywords:

Value added tax, Custom and excise duty tax and Income distribution

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