THE IMPACT OF TAX EVASION AND TAX AVOIDANCE IN NIGERIA ECONOMIC GROWTH

ABSTRACT

This study investigates the effects of tax evasion and tax avoidance on Nigeria's economic growth, with a focus on the period between 2007 and 2022. Using a quantitative approach and secondary data from the Federal Inland Revenue Service (FIRS) and the National Bureau of Statistics (NBS), the study employs a multiple regression analysis to examine the relationship between tax evasion, tax avoidance, and economic growth indicators such as GDP, inflation, and unemployment. The results show that tax evasion and tax avoidance have significant negative impacts on Nigeria's economic growth, leading to reduced government revenue, increased income inequality, and decreased economic development. The study recommends policy measures to address tax evasion and tax avoidance, including strengthening tax laws, enhancing tax administration, and promoting transparency and accountability. The findings contribute to the ongoing discourse on taxation and economic growth in Nigeria, providing insights for policymakers, researchers, and stakeholders.