ABSTRACT

 This study focused on the examination of the effect of direct taxes on economic growth of Nigeria, specifically, it investigated the following; effect of company income tax on economic growth in Nigeria; effect oj personal income tax on economic growth in Nigeria; and effect of petroleum profit tax on economic growth in Nigeria. Hypotheses were formulated and tested at 0.05 level ofsignificance. It adopted the ex postfacto research design. The study specifically adopted Petroleum profit tax, Company Income Tax and Personal income Tax as proxiesfor Direct Taxes and made them serve as the independent variable, on the other hand, the study adopted Gross domestic product as the dependent variable. The Ordinary Least Square (OLS) multiple regression technique as the analytical tool, the study revealed that Petroleum profit tax, Company income tax and Personal income tax has a positive and significant effect on Gross domestic product growth rate In Nigeria. Thus, the study conclusively argues that Direct taxes have a significant effect on Economic growth in Nigeria, the researcher relying on the findings recommended that Direct tax should be adopted in a Country as it helps to improve the country’s economy