Impact of Petroleum Profit Tax (PPT) on the Growth of the Agricultural Sector of Nigerian Economy

Abstract

The aim of this study was to examine the impact of Petroleum Profit Tax (PPT) on the growth of the Agricultural sector of Nigerian economy with special consideration on Agricultural sector, while looking at the specific objective which examines if there is a significant impact of Petroleum Profit Tax (PPT) on Agricultural Sub-Sector of Nigerian economy. The study runs from 1981 through 2018. The research design for the study is ex-post facto research designs. The tool of data analysis is ordinary least square regression methods. Findings from the study reveal that Petroleum Profit Tax shows a significant positive relationship with the Agricultural Sector (β1= 0.333550). This shows that the tax which the relevant Tax Authorities collected from companies operating in the petroleum sector is highly germane to the growth of the Agricultural sector. The study recommended that Government customs and excise duties on agricultural exports should be stream-lined and more incentives should be given to rural farmers since they covered the larger population in agricultural sector and also Government should increase her budgetary allocation to this sector in a consistent manner because of its importance to the national economy, hoping that with proper monitoring of fund, it would contribute more significantly to the economy of the country. An effective utilization of such funds is also advocated and all areas of wastage blocked. All organs of the Government should exhibit good corporate governance and transparency.