I Am a final year student of one of the federal universities and am currently writing my project but thanks to ASSU i actually have more time for it. But am a worker and hence s partime student. So i will be uploading my project here for you guys to help me make corrections where needed and please to fail to criticize where necessary and also highlight the areas u fill is not well done.
Before I forget am an Accounting student

The title of this project work is : A critically examination of the relationship between VAT revenue, economic growth on poverty reduction in Nigeria.

Whatz ur topic?

CHAPTER ONE
INTRODUCTION

1.1 BACKGROUND TO THE STUDY
Government Revenue is attracting attention in the world research agenda. This is as a result of increasing need by government all over the world to provide quality service to its citizenry. Provision of infrastructural facilities like education, security, electricity, motorable roads and portable water require huge funds. Meanwhile, as government expenditure is increasing, government revenue is thinning down. For the activities of government to subsist, the availability of fund is important.
Everywhere in the world, government sources of funds are numerous. In Nigeria, the source of revenue at the federal level ranges from oil revenue and non-oil revenue such as corporate tax, royalties, fines and fees and most importantly Value Added Tax (VAT).
Tax is a major source of government revenue all over the world. Government uses tax revenue to render its traditional functions of providing public goods, maintaining law and order, defend its territorial integrity against external aggression, regulation of trade and business to ensure social and economic stability. (Azubuike 2009).

Although, some countries are yet to implement VAT as a source of revenue, for most countries where it is collected, it represent a resource inflow that surpass a great number of other source of revenue that have received much more research attention. According to central Bank of Nigeria (CBN) annual report (2010) federal government non-oil revenue increased by 15.4% to =N=1,907.6 billion or 6.5 per cent of GDP, A breakdown showed that Value Added Tax (VAT) increased by 20.2 per cent to =N=562.9 billion, while company income tax (CIT) and customs/ excise duties increased by 15.7 and 3.9 per cent, to =N=657.3billion and =N=309.2 billion, respectively.
The report also showed that Value Added Tax (VAT) is the second largest source of federal government non-oil revenue after company income tax (CIT) followed by customs and excise, Federal government independent revenue, Education Tax, customs levis an NITDF by 16.2%, 8.1 per cent, 6.0%, 5.4% and 0.4% respectively in 2010.

Despite these recorded revenues, particularly from Value Added Tax, there are still signs of poverty in the country. Available records from the Federal offices of statistics (1996) showed that about 71 per cent of Nigeria households are considered poor. However, the poverty level increased to 74.2 per cent in the year 2000.

Poverty has a lot of negative consequences; it increases crime, prostitution and high level of HIV/AIDS, loss of confidence in the government.
Given the seemingly neglect of value added tax (VAT) as an important source of government revenue, it has a great potential to spur economic growth and thereby reduce poverty in the country, it is necessary that a systematic analysis of how VAT could affect economic growth, followed by a robust empirical investigation of whether Value Added Tax, could spur economic growth and hence reduce poverty in Nigeria.

1.2 Statement of the Problem

Value Added Tax (VAT) has been identified as a veritable source of finance to government of many nations of the world, for provision of infrastructural facilities and protect its territorial integrity against external aggression, regulation of trade and investment to ensure social and economic stability.

Unfortunately, empirical study that investigates the impact of Value Added Tax (VAT), on economic growth is scanty. Few studies on this all important topic show that Value Added Tax impact on economic growth, but the impact are of highly uncertain magnitude and conflicting direction.

The implication that emerges from these studies is that the impact of Value Added Tax on economic growth are theoretically ambiguous. Several studies on the relationship between VAT and Economic growth indicate that VAT revenue impacts positively on economic growth.
In particular, Alba (2011), Adereti Sanni and Adesina (2011), Naiyeju (2009), Ravindra (2005), Anyanwu (1997), Tosun (2005), Arnol (2011) amongst others found that VAT spurs economic growth.

Even though almost all the studies are unanimous on the relationship between VAT and growth, they disagreed sharply on the direction of causality. While researchers like Alba (1993) and Ravindra (2011) found that VAT causes growth other Studies, like Adereti and Naiyeju (2009), Alba (2011) posits that economic growth causes VAT.
The argument of causality notwithstanding, the most noticeable gap in previous studies is the issue of whether VAT through economic growth has or can reduce poverty in Nigeria.

This study therefore tries to examine empirically the relationship between VAT revenue, economic growth and poverty reduction in Nigeria.

1.3 Research Question

Given the above research problem, the following questions are raised.
i. What has been the trend of VAT, economic growth and poverty reduction in Nigeria?
ii. What are the causal relationships among VAT revenue, economic growth and poverty reduction in Nigeria?
iii. What is the effect of VAT on economic growth and poverty reduction in Nigeria?

1.4 Objectives of the Study

The broad objective of this study is to critically examine the relationship between VAT revenue, economic growth on poverty reduction in Nigeria. The specific objectives are:
i. To examine the trend of VAT, economic growth and poverty reduction in Nigeria
ii. To investigate the causal relationship among VAT revenue, economic growth and poverty reduction in Nigeria
iii. To determine the differential effect of VAT revenue, economic growth and poverty reduction in Nigeria

1.5 Justification of the Study

As challenges faced by federal government of Nigeria continues to increase as a result of increasing poverty rate, occasioned by apparent lack of infrastructural facilities, it is imperative that empirical studies that examine the relationship between VAT, economic growth and poverty reduction be carried out in Nigeria.
The result of this study will be both theoretically and practically significant. Theoretically, it will elaborate the present knowledge on effect of VAT, economic growth and poverty reduction in Nigeria.
Practically, the result of this study will be useful to all stakeholders in the Nigeria economy, especially the federal, state government and tax authorities who require knowledge on whether VAT revenue have been well utilized to the wellbeing of Nigerians or not. In addition, it will proffer solution to the problem of fraud in tax administration in Nigeria. It will also serve as a reference material to upcoming researchers.

1.6 Scope of the Study

The scope of the study aims at looking and researching into the relationship between VAT revenue, economic growth and poverty reduction in Nigeria. This is with a view to determining if VAT through economic growth leads to poverty reduction. The study covers the period from 1994 to 2010, a span of 16years using only relevant indicators such as VAT revenue, gross domestic product and poverty rate in Nigeria. The choice of period is informed by the fact that VAT was implemented in Nigeria in 1994.

to see more information on impact of value added tax on manufacturing sector of the Nigeria economy you most read this http://www.projectandresearchwork.com/impact-of-vat-on-the-manufacturing-sector-of-the-nigerian-economy/