ALI Peter Abah

Abstract

This study investigates the effect of taxation on revenue generation and economic growth in Ogbadibo Local Government Area of Benue State, Nigeria. The objective is to examine the influence of taxation on revenue generation and economic development within the area. A descriptive survey research design was employed, using structured questionnaires distributed to 233 respondents comprising local government staff, business owners, and residents. Data were analysed using descriptive statistics, including mean and standard deviation, to examine and determine the relationship between taxation and economic indicators. The findings reveal that taxation plays a significant role in boosting revenue generation in Ogbadibo, contributing directly to the funding of essential services and infrastructure. Respondents agreed that efficient tax administration can enhance local economic activities by facilitating improved public investment. However, the study also identified several challenges, including poor tax compliance, inadequate enforcement mechanisms, and public mistrust regarding the management of tax revenue. The results indicate a moderate positive relationship between taxation and economic growth, suggesting that while taxation has potential; its impact is constrained by administrative inefficiencies and low public awareness. Based on the findings, the study recommends that the local government improve transparency in the utilisation of tax revenue to build public trust and compliance. Additionally, efforts should be made to simplify the tax process, enhance taxpayer education, and strengthen enforcement frameworks to ensure greater compliance and sustained economic development in the area.

   

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Published: 2025

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