ABSTRACT

The study focused on the economy of Nigeria and examined how various forms of taxation influence Nigeria’s economic growth. The study utilized the ordinary least squares (OLS) econometric method to examine the empirical model and assess the impact of taxation on economic growth in Nigeria. The selection of this analytical approach is based on its ability to generate the Best Linear Unbiased Estimates (BLUE). Preliminary assessments, such as normality testing, serial correlation testing, heteroscedasticity testing, and the Ramsay RESET test for model stability, was conducted to ensure the effectiveness of the OLS method. The findings revealed that: there is a significant relationship between corporate income tax and economic growth in Nigeria, that value added tax does not have a significant impact on economic growth in Nigeria, that there is no significant relationship between customs and excise duties and economic growth and it also revealed that petroleum profits tax does not significantly influence economic growth in Nigeria. Based on the findings it was recommended that: Nigerian policymakers to carefully review and possibly reform corporate income tax policies, authorities should reconsider their PIT strategies, policymakers should consider streamlining and modernizing customs and excise duty collection processes and lastly Nigerian government to assess the overall impact of this tax.