PETROLEUM PROFIT TAX AND HUMAN CAPITAL DEVELOPMENT IN NIGERIA

Abstract

This study examined the effect of Petroleum Profit Tax on human development index in Nigeria. Ex post facto research design was adopted for the study. Data were extracted from World Bank reports, CBN statistical bulletin as well as the Federal Inland Revenue (FIRS) spanning from 2000 to 2024. This study employed descriptive statistics to analyze the data and regression analysis was used to test the hypothesis with the aid of E-Views 9. Based on the data analysis result, the study indicates that petroleum profit tax has negative effect on human capital index in Nigeria, but this was significant at 5% level of significance and the result also shows that value-added tax has positive effect on human capital index in Nigeria, and this was significant at 5% level of significance. The study therefore recommended that there is need to create a mandatory human development fund sourced from PPT, managed transparently and allocated only on healthcare delivery, education support and livelihood programms in oil-producing and other communities.