TAXATION, TAX EVASION AND ECONOMIC GROWTH OF NIGERIA

Abstract

The research assesses the linkage between tax, tax evasion, and Nigerian economic growth. It specifically investigated how company income tax, petroleum profit tax, value added tax, and tax evasion would impact Nigerian per capita income. The research used secondary data sourced from the annual report of the Nigerian Federal Inland Revenue Services (FIRS) and Central Bank of Nigeria (CBN) statistical bulletin covering the period of 1990 and 2023. The data was estimated using the multiple regression technique. Unit root test revealed levels and first difference stationarity among all variables. The regression result reveals that company income tax, petroleum profit tax, and value added tax positively and significantly while tax evasion negatively and significantly impact per capita income. The study therefore, recommends that the Nigerian government should motivate companies to keep paying their company income tax so as to boost economic growth. This can be achieved by granting tax incentives to companies that frequently pay their taxes.