ABSTRACT

 The study investigated on the effect ofpetroleum profit tax (PPT) on economic growth (proxy> by GDP) in Nigeria. The major objectives of the study were to examine the effect ofpetroleum profit tax on Gross Domesticproduct in Nigeria, to determine the effect ofpetroleum profit tax on total revenue ofNigeria and to investigate the effect ofpetroleum profit tax on inflation rate in Nigeria. To achieve the objectives of the study, expostfacto design was adopted. The researcher adopted secondary data in getting the required information. In testing the hypotheses, regression analysis was used was used. The findings revealed that there is a significant relationship between PPT and Gross Domestic Product. The findings further revealed that there is a significant relationship between PPT and total revenue of Nigeria. The researcher recommends that Government should transparently andjudiciously accountfor the revenue it generates through PPT by investing in the provision of infrastructure and public goods and services. The researcher also recommends that government should minimize or find ways of eliminating totally the widespread corruption and leakages in the petroleum profit tax administration.