ABSTRACT

Thestudy investigated the effect ofpetroleum profit tax on economic growth in Nigeria. There has been poorperformance ofnational institutionssuch aspower, energy, road, transportation, politics, financial systems and investment environment has been deteriorating and inefficient. The major objectives ofthe study are to examine the extent to which actual petroleum profit tax affects Gross Domesticproduct in Nigeria andto examine the extent to which budgetedpetroleumprofit tax affects Gross Domestic product in Nigeria. To achieve the objectives ofthe study, ex-pose facto research design was adopted. The researcher adopted secondary data in getting the required information. In testing the hypothesissimple regression analysiswas used. The findingsin chapterfourreviewed that actual petroleum profit tax has a significant effect on economic growth, budgetedpetroleum profit tax has a significant effect on economic growth. In conclusion, the administration ofpetroleumprofit tax in Nigeria has mainly beenfocus on revenue generation to the detriment ofstimulating economic growth anddevelopment. Researcherrecommends that For the PPTpolicy to have a more significant impact on the revenue and economic development ofNigeria, Government should minimize orfind ways of eliminating totally the widespread corruption and leakages in the petroleum profit tax administration.