Petroleum Profit Tax and Nigeria Economic Development

Petroleum Profit Tax is a major source of revenue for the Federal Government of Nigeria to meet its statutory obligations of ensuring the economic development of Nigeria. It assists the government to achieve the country’s macroeconomic objective in the areas of fiscal and monetary policies.However,it has been observed that non-provision of corporate social responsibilities in the communities where there is extraction of crude oil result into constant destruction of production installations, and hindrance to production; tax avoidance and evasion d poor tax administration, and weak fiscal policy have been negating the increase in tax income generated. The main objective of this paper is to assess the relationship between petroleum profit tax and economic development of Nigeria for the enhancement of the welfare of the citizens. Primary and secondary data were used to collect the research data, while chi-square and multiple regression statistical models were used to analyze the results of the field work. The findings reveal that there is a very strong relationship between petroleum profit tax and economic development of Nigeria, tax avoidance and evasion are major hindrance to income growth in this sector, poor tax administration is a problem to effectiveness and efficiency of this source of income, and lack of corporate social responsibilities is causing unrest in the crude oil production zone. The paper recommends the need for the government to make judicious use income generated for the benefits of Nigerians, and among others the need for tax reforms to address the issue of tax evasion and avoidance

Globalization and the Precarious State of Public Finance in Nigeria

As globalization eviscerates national borders, governments in both developed and developing countries are discovering that their tax base is eroding, especially their ability to tax the proceeds and profits from corporate investment and finance Domestic revenue mobilization is key to sustainable development finance – only selfsufficiency will allow the development of fully-functioning states with flourishing systems of political representation and economies reflecting societies’ expressed preferences in regard to, for example, inequality. The significant of this paper therefore is that it will enable the revenue authority take necessary steps to prevent tax avoidance and tax evasion so as to increase the level of domestic revenue for development. It concluded that claims of corporate social responsibility are undermined when low corporate tax payments are exposed and a process of tax competition at the global level undermines the social contract previously set within the national arena, as states compete to offer tax exemption to capital. The paper suggested that with effective tax administration, adequate taxation of transnational corporations, tax compliance as part of corporate accountability, international tax cooperation, fight against bribery and corruption, arm length international trade negotiations and reduction in military expenditure, the problems are more likely to be solved

The Competitive Advantage of Outstanding the Products and Services of the Nigerian Service Industry

The study examines the concept of outsourcing and the possible impact it has on the competitive advantage it has on a company in Nigerian economy. Outsourcing is the practice in which companies move or contract out some or all of their products or service operations to other companies that specialize in those operations or to companies in other countries. The problems indentified in the Nigeria service industry are high operating cost having negative impact on return on capital employed, sub-optimality in production because of ineffective utilization of resources and inability of organization to identify areas of core competence for competitive advantage. The main objective of this paper is to evaluate the competitive advantag

Tax Expenditure in Sub Saharan Africa: The Nigerian Experience

The Nigerian government established the National Economic Empowerment and Development Strategies(NEEDS) in 2003 to achieve its trade policy of which the reform of Nigeria Custom Services is one of the major functions. Over the years, custom and excise duties have been major sources of revenue apart from crude oil.However, the problems of corruption, fraud and malpractices together with inefficiencies and ineffectiveness in operations have hindered the desire to contribute maximally to the economic development of the nation. The central objective of trade policy was to provide protection for domestic industries and reduce the perceived dependence on imports; reduce level of unemployment and generate more revenues from the non-oil sector,hence tariffs on raw materials and intermediate capital goods were scaled down. Duty exemptions and concessions remain some of the quantitative policy instruments for attracting investment and boost domestic production. This paper will review; discuss Tax Expenditure and the Nigerian experience, especially on loss of revenue from custom

Flow of a Newtonian fluid in a symmetrically heated channel: Effect of viscosity and viscous dissipation

This paper discusses the effect of viscosity and viscous dissipation (due to a high velocity gradient) on the steady flow of a viscous liquid in a symmetrically heated channel. The coupled nonlinear differential equations arising in the planar Poiseuille flow are not amendable to analytical solutions. Therefore, numerical solutions based on finite-difference scheme are presented. The effects of various flow controlling parameters such as temperature difference α, dimensionless pressure gradient, and the dimensionless viscous heating parameter δ on the dimensionless velocity and temperature are analyzed. The analysis reveals that when viscous heating parameter δ=0, we obtained zero solution for the dimensionless temperature

Quality of Tax Services, Moderated by Trust in State Internal Revenue Service and Voluntary Tax Compliance Behaviour among Individual Taxpayers in South-West, Nigeria

Research on tax compliance is of economic, social and political benefit to the government and the citizens. Constant loss of tax revenue due to level of Quality of Tax Service (QTS) rendered by tax authority is perceived to have adversely affected nation’s revenue generation and infrastructural development. Researches have been carried out on taxpayers’ compliance, but not many considered the effect of QTS in their study. This studied looked at the probable influence of QTS on taxpayers’ Voluntary Tax Compliance (VTC) behaviour in South-West, Nigeria. The study used survey research design with study population of 5,216,422 individual taxpayers. Data were collected with validated questionnaire by means of random sampling techniques. Sample size of 1,200 was used with a response rate of 87.6%. Descriptive and inferential statistics were used to analyse data at 5% significance level. The study revealed that QTS positively influenced VTC among individual taxpayers in the study states (Adj.R2 =.117, F(6, 1050) =24.139, p =.000). There was evidence that trust in State Internal Revenue Service, QTS and employment status have significant relationship with VTC behaviour while gender, age and educational level do not have significant relationship with VTC in the study states respectively. The study concluded that QTS influenced VTC. Therefore, lack of tax awareness, tax education/information and poor tax service delivery was responsible for tax non-compliance. The study recommended that government should carry out tax education/information and tax awareness to taxpayers while tax officials should apply the concept of public management to tax service delivery

Studies on the Effects of Interphase Heat Exchange during Thermal Explosion in a Combustible Dusty Gas with General Arrhenius Reaction-Rate Laws

A mathematical model for thermal explosion in a combustible dusty gas containing fuel droplets with general Arrhenius reaction-rate laws, convective and radiative heat losses, and interphase heat exchange between gas and inert solid particles is investigated. The objective of the study is to examine the effects of interphase heat exchange between the gas and solid particles on (i) ignition of reacting gas, (ii) accumulation of heat by the solid particles during combustion process (iii) evaporation of the liquid fuel droplets, and (iv) consumption of reacting gas concentration. The equations governing the physical model with realistic assumptions are stated and nondimensionalised leading to an intractable system of first-order coupled nonlinear differential equations, which is not amenable to exact methods of solution. Therefore, we present numerical solutions as well as different qualitative effects of varying interphase heat exchange parameter. Graphs and Table feature prominently to explain the results obtained