International Research and Academic scholar society

IRASS Journal of Economics and Business Management

Issue-5(May), Volume-2 2025

1. Determinants of Debt Sustainability in Nigeria: The Consequence of Cru...
5

Emmanuel Sunday KOLEDOYE, Sabi...
Department of Economics, University of Abuja, Abuja, Nigeria
1-9
https://doi.org/10.5281/zenodo.15331137

Fiscal and debt sustainability have become significant challenges for developing countries, including Nigeria, since the country has experienced rising debt and expanding fiscal deficits in recent decades, threatening its fiscal policies and long-term economic stability. Using data from 2000 to 2023, this study used a Vector Error Correction Model (VECM) to examine the long-term determinants of debt sustainability. The major variables studied are the government expenditure-to-GDP ratio, revenue-to-GDP ratio, debt servicing, real GDP, and institutional quality. The findings showed that, while government spending and debt servicing have a large impact on the debt-to-GDP ratio, revenue has a less direct effect. Higher government spending, when distributed correctly, can reduce the debt burden, whereas good debt servicing leads to debt reduction over time. The findings also revealed that economic growth and institutional quality have a weaker short-term impact on the debt-to-GDP ratio. The study emphasizes the gradual nature of debt adjustment, emphasizing the significance of fiscal consolidation, discipline, and strategic government expenditure. Policy recommendations include increasing spending efficiency, improving debt management measures, encouraging economic growth, building institutional frameworks, and increasing financial literacy.

2. NEW TAX REFORMS 2025: YOU EARN, SPEND, BUY, SELL AND PAY ON GOODS AND...
4

MAKAR, TERHEMBA DAVID , Dr Tyo...
Department of Public Administration, Faculty of Management Sciences, Veritas University of Nigeria, Bwari-Abuja
10-24
https://doi.org/10.5281/zenodo.15362066

The 2025 Nigerian Tax Reform Bill, recently passed by the National Assembly and awaiting executive assent, seeks to modernize Nigeria's tax system by harmonizing tax laws, improving compliance mechanisms, and enhancing revenue generation. The bill comprises four key legislative initiatives: the Nigeria Tax Administration Bill (2024), the Nigeria Revenue Service Establishment Bill (2024), and the Joint Revenue Board Establishment Bill (2024). These legislative measures are designed to expand the tax base, streamline tax administration, and create sustainable revenue streams for national development while promoting economic efficiency and fairness. This study critically examines the structure, scope, and implications of the tax reform bills, focusing on their impact on individuals, corporate entities, and both national and subnational governments. Key concerns include the timing of implementation amid economic challenges, the regressivity of Value-Added Tax (VAT) increases, potential regional disparities, limited redistributive provisions, and the disproportionate impact on Small and Medium-sized Enterprises (SMEs). Employing a qualitative research approach, the study draws on secondary data sources, including government reports, academic literature, and international case studies, to evaluate the reforms' effectiveness and their alignment with global best practices. Findings indicate that while the tax reforms have the potential to enhance revenue mobilization, strengthen institutional efficiency, and support economic diversification, they also present significant risks such as higher costs of living, reduced business profitability, compliance burdens—particularly for informal sector participants—and the risk of exacerbating economic inequality. To address these challenges and optimize the benefits of the reforms, this study recommends a Harmonizing Federal, State, and Local Taxation, Strategic Tax Incentives, Digitalization of Tax Administration, Improved Public Service Delivery and Equitable Revenue Allocation. These strategies are essential for ensuring that the tax reforms contribute to sustainable economic growth, fiscal stability, and a more inclusive tax system in Nigeria.

3. Understanding the financial instruction
4

Akintola, Precious Osigbodi, D...
Department of Public Administration, Faculty of Management Sciences, Veritas University of Nigeria, Bwari-Abuja
25-33
https://doi.org/10.5281/zenodo.15400539

Financial instruction encompasses the guidelines, procedures, and regulations that govern the management of financial resources within organizations. In the context of general financial management, these instructions are important in ensuring fiscal discipline, accountability, and transparency. This paper examines critical components of Nigeria's financial instructions, focusing on mechanisms that govern public financial management. The analysis covers Authority to Incur Expenditure, Adjustment Voucher, Imprest, Virement, Custody of Public Money, Duplicate Keys, Lost Keys, Strong Room Register, Cash in Transit, Preparation of Capital and Recurrent Estimates, Through a comprehensive review of literature and case studies, the paper highlights the significance of financial instruction in achieving effective financial governance and offers recommendations for enhancing its application in diverse organizational settings.





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