Tax Reforms Burden and Human Development Index in Nigeria
DOI:
https://doi.org/10.33003/fujafr-2026.v4i2.350.290-301Keywords:
ARDL, human development index, Nigeria, tax burden, tax reformsAbstract
Purpose: This study investigates the effect of tax reform burden on human development index in Nigeria.
Methodology: The study used the Autoregressive Distributed Lag (ARDL) estimation technique to establish the long run effect of tax reform burden on human development index in Nigeria from 2005 to 2024 Tax reform burden is captured using the ratio of tax revenue to gross domestic product.
Results and conclusion: The study revealed that long run relationship exists among the variables in the estimated model. The results of the Error Correction Mechanism (ECM) showed that tax reform burden has negative and significant effect on human development index in Nigeria. It was further revealed that disposable income, aggregate household consumption expenditure and investment have positive and significant effects on human development index in Nigeria. Hence, it was concluded that effective and balanced tax reforms in Nigeria have the potential to enhance revenue collection, which can support investments in health, education and social services, thereby improving human development.
Implication of findings: The study reveals the nexus between tax reform burden and human development index suggesting that tax administration should be strengthened in order to achieve and harmonise tax reforms through the broadening of tax bases to improve compliance and support sustainable development. The government should streamline the tax system so as to reduce issue around tax evasion, hence widen the tax net.
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