TAX REVENUE AND ECONOMIC GROWTH IN NIGERIA

ABSTRACT

This study aims to investigate the impact of tax income on Nigeria's economic growth. The research aims to ascertain the impact of the Petroleum Profit Tax on Nigeria's gross domestic product and the effect of Company Inome Tax on the Nigeria's GDP and to determine how Customs and Excise Duties as well as Value Added Tax affect it. The CBN Statistical Bulletin and pertinent government publications provided secondary sources of data for the study covering the period of 12 years from 2010 - 2021. Ex - post facto research design was the methodology employed for this investigation. The hypotheses were tested using a multiple regression model. The results of the study show that Petroleum Profit Tax and Company Income Tax have no significant effect on the Gross Domestic product while Custom and Excise Duties and Value Added Tax have significant effect on the Gross Domestic product of Nigeria. Based on these findings, this study recommends that government should increase Custom and Excise Duties as well as Value Added Tax. Government should also implement measures to reduce the leakages in the Petroleum Profit Tax administration . The government should as well implement and enforce penalties to tax offenders. Tax authorities should endeavour to encourage companies pay tax.