Impact of Taxation on Wealth Creation in Nigeria: 2010-2023

The study examines the impact of taxation on wealth creation in Nigeria for a period of fourteen years (2010-2023). Data was collected from published reports of the Central Bank of Nigeria (CBN) and the Federal Inland Revenue Service (FIRS) and analyzed by means of descriptive statistics, correlation and multiple regressions. The study found that taxation (direct and indirect) is generally an instrument for sustainable revenue generation and collection, stabilization of the economy, controlling productive and consumption behaviors and narrowing of the gap between the rich and the poor. Individually, some taxes have more impact on wealth creation than others. For example, the impact of Petroleum Profit Tax (PPT) is higher than that of Companies Income Tax (CIT) or Value Added Tax (VAT) in Nigeria. The study recommends that government should intensify efforts at blocking all loopholes in the tax laws as well as bring more prospective tax payers (firms and individuals) into the tax net, especially those nigh net worth individuals and firms who do not pay tax properly. More so, Nigerian government should judiciously use the tax revenue collected for executing various developmental projects, including empowerment of micro, small and medium enterprises who could improve the quality of livelihood and infrastructures in the country, with a view to creating massive wealth needed to pave ways for the country to achieve sustainable development.