Taxation and economic growth in Nigeria

Taxation and economic growth in Nigeria

The study examined the relationship between taxation and the economic growth of Nigeria. It specifically explored the linkages among company income tax, petroleum profit tax and the economic growth of Nigeria proxied with Real Gross Domestic Product, using time series data for the period 1981 to 2016.Ex Post-Facto research design was employed. The findings indicate that petroleum profit tax (PPT) and company income tax (CIT) show positive and significant effect on the Real Gross Domestic Product (RGDP) in Nigeria. The study recommended that Nigerian government should put in place fiscal policies that will enhance investments in the real sector and create employment opportunities; endeavour to provide social amenities to all nooks and crannies of the country as this will boost the level of tax compliance in Nigeria; create an enabling environment for entrepreneurship and innovation to enhance income generated from tax proceeds.