REVIEW OF CHAPTER: IMPACT OF VALUE ADDED ECONOMIC GROWTH IN NIGERIA

Chapter eight of the book is a product of research carried out by Muhibudeen Latifat and
Abdulkadir Abba Hafiz of Department of Accounting, Yusuf Maitama Sule University,
Kano, Nigeria. The study assessed the impact of value added tax on economic growth in
Nigeria using secondary data obtained from Central Bank of Nigeria Statistical bulletins,
Nigeria Bureau of Statistics Publications and World Bank.
The study has five sections: Introduction, Literature Review, Methodology, Data Analysis
and Result Discussion and lastly Conclusion and Recommendation. Literature review was
further divided into Conceptual framework, review of related studies and theoretical
framework.

The introduction of the work presented an understanding of tax and historical background
of Value Added Tax in Nigeria. In his word, Value added tax was introduced in Nigeria on the 1st of January 1994 under Decree 102 of 1993. According to the researchers, an efficient
and effective tax system is capable of ensuring the basic necessities and services in the
country. It was emphasized that Taxes are used to achieve economic growth, equity in
income, wealth distribution and maintain equilibrium in the economy. He cited view
researchers like (Nasiru, Haruna & Abdullahi, 2016); Appah (2010); Ajakaiye (2000) and
Omokhuale (2016) to explain the meaning of tax, classification of taxes (direct and indirect)
and importance of value added tax to government revenue in all countries where it has been
introduced. The introductory paragraphs were rounded up by putting forward research
question (what is the relationship between VAT and Gross domestic product?) and aim of
the study (to analyze value added tax (VAT) and its impact on the Nigeria Economy.