ABSTRACT

This study focuses on the effect of tax revenue on economic growth in Nigeria (2007 - 2016). Tax evasion is a problem thatfaces every tax system; the Nigerian situation seems unique when viewed against the scale of corrupt practices prevalent in Nigeria. Under direct taxation as practiced in Nigeria, the major problem lies in the collection ofthe taxes especiallyfrom the self-employed such as the businessmen, professional practitioners like lawyers, doctors, accountants, architects and traders in shops among others. Data were collectedfrom secondary sources using an ex-post facto research design. The data collected were then tabulated and analyzed using the simple and multiple regression analysis. The results revealed that there is a significant relationship between total tax revenue and Nigerian economic growth. It further revealed that there is a significant relationship between various tax revenue and Nigerian economic growthfinally, it revealed that there is a significant relationship between tax revenue and total revenue ofNigeria. Conclusively, Nigeria as a nation has the vision of becoming one among the world’s 20 largest economies in the year 2020; this obviously is the brain behind the priority attention the present administration is directing at infrastructural development which is essential for economic growth. A developed economy is one with the ingredient to stimulate investment and create wealth, this by implication offers an atmosphere that is businessfriendly and has the potentials for the actualization of the vision 2O2O.The desired outcome requires a lot of money to put the economy in a position that stimulates investment, therefore, tax policies need to attract potential investors, and the revenue from tax should be sufficient enough to meet the infrastructural expenditures ofthe government. There is needfor additional measures by government in ensuring that taxpayers do not avoid and evade tax so that income can be properly redistributed in the economy. It is recommended that the regulatory authorities charged with the sole responsibility of collecting tax should further be strengthened to enforce compliance by taxpayers. Tax revenues should be properly distributed so that economic growth can be harnessed, especially in providing basic social amenities as well as infrastructures in Nigeria. Government should try and appoint capable and worthy hands who can able to manage and curb the high level offraud encountered in collecting tax.