Adegbite Tajudeen Adejare, Shehu Ayinla Ganiyu


The public constant drive for accountability has generated issues about the impact of tax income on road construction in Nigeria, as a result of perpetual collection of taxes by government without corresponding effect on good road network. Therefore, the motive of this study is to evaluate the impact of indirect taxes on road construction in Nigeria. The study looked into the effects of customs and excise duty, and value added tax on road construction from 1985 to 2020. Secondary data was gathered from the National Bureau of Statistics (NBS), the CBN and FIRS bulletins as well as other relevant official publications. To assess the causality among the variables used, the data was analyzed using Ordinary Least Square (OLS), ADF Unit root test, Co-integration analysis, VECM, and granger causality text. The study revealed that both VAT, and CED had positive and significant influence on road construction both in the short run and the long run. The study concluded that indirect taxes displayed positive impact of Nigeria road construction which is also significant. It is recommended that more efforts should be expended by the government to increase the coverage of value added tax in Nigeria for the uplifting of value added tax income mobilization, and ensures that revenue derived from indirect taxes are spent judiciously particularly towards provisions of good road infrastructure in Nigeria.


Road Construction, Customs and Excise Duty, Value Added Tax, Investment, Gross Domestic Product, Nigeria.

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