HISTORICAL EFFECT OF TAXATION ON THE ECONOMIC GROWTH OF NIGERIA

Abstract

Adequate and compelling strategy is relevant to any effective development and advancement process pointed toward accomplishing high business and employments, practical economic development, cost strength and long-suitability of the equilibrium of payments. It is in line with this that this study looks at the impacts of tax assessment on economic development of Nigeria crossing through the time span of twenty (20) years (2004-2024). The major purpose of the study was to ascertain the historical effect of taxation on economic growth of Nigeria measured by total national output. Theoretical framework of the study was based on benefit received theory, ability to pay principle, financial theory and principle of equity. Auxiliary and secondary information were obtained from CBN Statistical Bulletin, and other relevant sources for the period under review. The data were examined utilizing SPSS statistical package version 26. The outcomes found a positive and significant relationship exist between the various variables. The study concludes that taxation can affect the economy positively if appropriately organized and thus recommends that Government should employ the income produced from tax particularly company income tax to put resources into other domestic area in the economy.