ABSTRACT

This study attempt to assess the relationship between taxation and economic development in Nigeria. Particularly, the study was keen to examine the effect of tax revenue of the development of Nigerian economy. The Nigeria tax system, in spite of its development and nature, and other limiting factors has contributed immensely in the development of the economy. In order to examine these contributions secondary data were used for the period of 2000 to 2014 which covered a period 14 years and based on these data, two hypotheses were postulated and one was tested to know the effect of total tax revenue on GDP (Gross Domestic Product) using the Ordinary Least Square (OLS) method The results of the analysis show that there is a significant relationship between tax revenue and economic development in Nigeria. Implications of the results were given and recommendations were made to strengthen the tax system in Nigeria with the aim of making it more relevant and effective in the development of the Nigeria economy.