Effect Of Petroleum Profit Tax On Economic Growth In Nigeria

ABSTRACT

The study investigated the effect of petroleum profit tax on economic growth in Nigeria. There has been poor performance of national institutions such as power, energy, road, transportation, politics, financial systems and investment environment has been deteriorating and inefficient. The major objectives of the study are to examine the extent to which actual petroleum profit tax affects Gross Domestic product in Nigeria and to examine the extent to which budgeted petroleum profit tax affects Gross Domestic product in Nigeria. To achieve the objectives of the study, ex-pose facto research design was adopted. The researcher adopted secondary data in getting the required information. In testing the hypothesis simple regression analysis was used. The findings in chapter four reviewed that actual petroleum profit tax has a significant effect on economic growth, budgeted petroleum profit tax has a significant effect on economic growth. In conclusion, the administration of petroleum profit tax in Nigeria has mainly been focus on revenue generation to the detriment of stimulating economic growth and development. Researcher recommends that For the PPT policy to have a more significant impact on the revenue and economic development of Nigeria, Government should minimize or find ways 0/ eliminating totally the widespread corruption and leakages in the petroleum profit tax administration.