TAXPAYERS’ APATHY AND ECONOMIC DEVELOPMENT IN NIGERIA

Abstract

This study investigates the effect of taxpayers’ apathy on the economic development of
Nigeria, with focus on tax policy, tax administration, and tax reform. Employing a
cross-sectional survey design, primary data were collected through questionnaires
administered to 52 respondents drawn from the Institute of Chartered Accountants of
Nigeria (ICAN) and the State Inland Revenue Board in Benin City, Edo State. Multiple
regression analysis was used to test the hypotheses. Results show that tax policy has a
positive and significant effect on economic development, while tax administration
exerts a significant negative effect, reflecting administrative inefficiencies. Tax reforms
was found to have no significant positive effect on economic development. on
economic development. The study concludes that effective tax policy formulation and
improved administration are critical for overcoming Taxpayers’ apathy for Nigeria’s
economic development, while existing reforms require better implementation.
Recommendations include clarifying tax policies, strengthening administrative
capacity, and promoting inclusive tax reform processes to foster sustainable
development.