Impact Of Petroleum Profit Tax On The Economic Growth Of Nigeria (1989-2018):- Jamek Janemary C

ABSTRACT

The study investigated the impact ofpetroleum profit tax on the economic growth of Nigeria, from 1989-2018. To achieve this objective, the study specifically investigated the effect ofpetroleum profit tax (PPT) on gross domestic product ofNigeria (GDP), effect ofpetroleum profit tax (PPT) on gross domestic product growth rate ofNigeria (GDPGR). The study restricted its scape to the period 1989-2018 and data usedfor the study was adopted from the Central bank statistical bulletin websites and the Federal Inland revenue services official websites. The simple regression method was employed as the analytical tool. Findings show that petroleum profit tax as the independent variable has a positive and significant effect on the Economic growth of Nigeria, which wasproxiedwith Gross domesticproduct and Gross domesticproduct growth rate in Nigeria. The study recommends that Petroleum profit tax should be well managed and administered as it possesses a high level ofinteraction with the changes in levels of activities measured by the value of the GDP. The Nigerian government should endeavor to solve adequately the current national problem of mono-economy. This is because robust regression estimate obtained for petroleum profit tax and various government expenditures suggest that petroleum profit tax may accountfor a large part oftotal government income obtained via taxation. And this reflects a picture of more than proportionate dependence on the oil sector of the economy to generate national income.