Selected Taxes and Manufacturing Sector Output in Nigeria

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Published: 2024-03-15

Page: 88-100

Eniekezimene, Ariayefa Francis *

Department of Economics, Niger Delta University, Wilberforce Island, Bayelsa State, Nigeria.

Wodu, Ebimowei

Bayelsa State Ministry of Finance, Yenagoa, Bayelsa State, Nigeria.

Anda-Owei, Joseph Peres

Department of Economics, Nile University of Nigeria, Abuja, Nigeria.

*Author to whom correspondence should be addressed.


This paper examined the impact of selected taxes on manufacturing output in Nigeria using quarterly time series data from 2011Q1 to 2022Q4. Real manufacturing gross domestic product (RMGDP) was used as proxy for manufacturing sector output and the dependent variable while petroleum profit tax (PPT), company income tax (CIT), import value added tax (IMVAT) and domestic value added tax (DVAT) were the explanatory variables. The Lindahl theory of taxation was used as the theoretical foundation for the tax and manufacturing output model. After subjecting the series to stationarity test using the Phillips Perron test, the autoregressive distributed lag (ARDL) regression technique was used to evaluate the model. The results revealed that in the long run both company income tax (CIT) and import value added tax had significant negative impact on Manufacturing output, while domestic value added tax (DVAT) impacted positively on manufacturing output. On the other hand, in the short run, while petroleum profit tax (PPT) and domestic value added tax (DVAT) impacted negatively on manufacturing output, import value added tax (IMVAT) impacted positively on manufacturing output. Based on these findings, the study recommended among other things that the government should balance its company income tax (CIT) with the provision of basic social goods such as security, electricity and good road networks in the country to reduce the negative impact of company income tax on manufacturing output in the long run.

Keywords: Taxation, manufacturing output, lindahl theory, ARDL, Nigeria

How to Cite

Francis, E. A., Ebimowei , W., & Peres , A.-O. J. (2024). Selected Taxes and Manufacturing Sector Output in Nigeria. Asian Journal of Economics, Finance and Management, 6(1), 88–100. Retrieved from


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