A COMPARATIVE ANALYSIS OF TAX REVENUE AND ECONOMIC GROWTH OF NIGERIA AND GHANA

This study ascertained the effects of tax revenue on economic growth of Nigeria and Ghana spanning from 2001 to 2024, using Custom and Excise Duties Tax and Capital Gain Tax. Ex Post Facto research design was employed. A purposive sampling technique was applied to selected Nigeria and Ghana because of the similarities in both countries tax system and economic growth. Data were extracted from World Bank Data, CBN statistical bulletin of both countries. Descriptive Statistics and Pearson Correlation were used to analyze the data, while Error Correction Model Regression Analysis was used to test the hypotheses. The study showed that stamp and excise duties are positive and non-statistically significant on their real GDP of Nigeria and Ghana. The study also found that CGT has negative but statistical significant effect on real gross domestic product in Nigeria and reported a positive but non-statistical significant effect on real gross domestic product in Ghana. Based on these findings, the study concluded that the outcome from the study can be due to different in tax rates and administration; as well as tax avoidance and aggressiveness can also be a contributing factor to it. It was recommended that, government should devise means of curbing corruption and leakages in the CED administration and continue in investing in infrastructure and public goods and services