TAX REVENUE AND ECONOMIC GROWTH IN NIGERIA

Abstract

This paper examined tax revenue and economic growth in Nigeria from the period of 1994-2022. The study adopted the ex post facto research design and employed annual time series data. The Ordinary Least Squares of Multiple Regression model was used for estimation. The findings revealed that value added tax (VAT) has a positive and significant impact on the economic growth of Nigeria, company income tax (CIT) has a negative and significant impact on the economic growth in Nigeria and petroleum profit tax (PPT) has a positive and weak impact on the economic growth in Nigeria. The study recommends among others that since, VAT and PPT have significant effect on the economic growth, government and its tax agencies should ensure that VAT and PPT proceeds are employed to boost sustainable economic growth in Nigeria.