The Impact of Gas Exploration Taxes on Economic Growth in Nigeria (1981-2020)

21 Pages Posted: 28 May 2021

See all articles by Wonders Ebimotimimowei Pibowei

Wonders Ebimotimimowei Pibowei

Ignatius Ajuru University of Education

mohamed marei

Cairo University, Faculty of Commerce, Students

Date Written: May 26, 2021


The primary function of a resilient oil and gas tax system is to raise enough revenue to finance essential government expenditure that will raise the standard of living, promote sustainable firms and create jobs of the future for economic growth. This study seeks to determine the impact of gas exploration taxes on economic growth in Nigeria from 1981 to 2020. An expo-facto research design with two (2) objectives and one (1) baseline theory anchored this empirical paper. The population of the study is Nigeria with a tax history of forty years from 1981 to 2020. The study adopted an interval scale of measurement and the preceding year basis of sampling, with a sample size of nine (9) years from 2010 to 2018. The source of data was secondary, obtained from the Central Bank of Nigeria, National Bureau of Statistics, OECD Statistics, and World Bank Group. The study adopted univariate analysis and bivariate analysis for data analysis with MS Excel 2019 and SPSS Statistics 26. The study found that and that ITG has no significant relationship with PCI but has a significant relationship with JOB. The study concluded that: given high levels of oil price stability and production boom, income tax on gas exploration might significantly contribute to per capita income and employment rate, with a correlation of more than 67%. The study recommended that government should reduce the tax incentives granted to petroleum companies in Nigeria, and increase the tax rate of non-petroleum companies, which will increase government revenue from petroleum taxes, during times of oil price volatility and production cuts.

Suggested Citation

Pibowei, Wonders Ebimotimimowei and marei, mohamed, The Impact of Gas Exploration Taxes on Economic Growth in Nigeria (1981-2020) (May 26, 2021). Available at SSRN: or

Wonders Ebimotimimowei Pibowei (Contact Author)

Ignatius Ajuru University of Education ( email )

Port Harcourt, Rivers State 500102
+2348116799050 (Phone)


Mohamed Marei

Cairo University, Faculty of Commerce, Students ( email )

Al Orman
Giza, Cairo

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