Effect Of Petroleum Profit Tax On Economic Growth In Nigeria:- Johnson, Erifen O.

ABSTRACT

The study evaluated the effect of Petroleum profit tax (PPT) on economic growth of Nigeria.  The ex post facto research design was adopted; annual secondary time series data was utilized and was sourced from the Central Bank of Nigeria Statistical Bulletin and Central Bank of Nigeria Annual Report. Simple regression analysis was used in analyzing the data collected.  Finding from the study revealed that Petroleum profit tax has a positive and significant effect on gross domestic product in Nigeria. Petroleum profit tax has a positive and significant effect on total tax revenue in Nigeria. Based on the findings of the study, it recommends amongst other things that the government should ensure that oil companies pay up their taxes so as to increase the amount of PPT by providing some tax relief to encourage prompt payment. Federal Inland Revenue service should ensure proper collection and accounting of PPT to avoid leakages.