ABSTRACT

This study was intended to evaluate the effect of taxation on economic growth in Nigeria. The study was guided by the following objectives; To evaluate the nature of the relationship that exist between taxation and economic growth in Nigeria, to determine the contribution of tax to gross federally collected revenue and to examine if tax revenue has any significant effect on gross domestic product. The study employed historical research design; Secondary sources of data were employed Specifically, the study used tax figures, gross federally collected revenue (GFCR) and GDP figures from 2004-2018 which is from the desk of federal in land revenue services (FIRS), central bank of Nigeria (CBN) and National Bureau of Statistics (NBS) The study employed the use of simple regression analysis to determine the effect of the independent variable on the dependent variable while the Pearson's correlation was used in testing the hypotheses. The study findings revealed that taxation is regarded as a tool of fiscal policy used by government all over the world to influence positively or negatively particular type of economic activities in order to achieve desired government objectives such as to increase the rate of economic growth and hence per capital income which leads to a higher standard of living. Based on the findings of this research, it was rightly concluded that the application of taxation have a great effect on economic growth in Nigeria.