Taxation and Economic Growth Nexus: Emperical Evidence from Nigeria.

For the years 1990 to 2021, the study looks into the connection between taxation and economic growth in Nigeria. The explanatory variables for taxes include personal income tax, corporation income tax, value added tax, capital gain tax, and property tax. Gross domestic product was utilized as the indicator of economic growth. The goal of this study is to ascertain the long-term relationship between these taxing factors and Nigeria's economic growth. In order to prevent erroneous regression, the data set obtained from the Federal Inland Revenue Service, the Central Bank of Nigeria, and statistical bulletin was subjected to the Augmented Dickey Fuller Unit Root Test, which demonstrates that the variables are not stationary. Due to this, the autoregression distributed lag approach to co-integration had to be implemented. The outcome of the Wald test showed that the variables are co-integrated and that there is a long-term relationship between them. The model's long-term analysis shows a positive long-term relationship between GDP and personal income tax, capital gains tax, and property tax, but a negative long-term relationship between GDP and company income tax and value added tax. The study recommends a visible and updated basic amenities which will prompt the citizens to pay more tax and enhance accountability and transparency from the government regarding the management of revenue from tax to promote compliance among the tax payers