ABSTRACT.

The study examined the impact of taxation on economic growth in the Nigeria for the period of 40 years (1974 – 2014). The focus of the research was to determine the cause and effect of taxation on economic growth in the Nigeria. The methodology adopted for the study was ordinary least square (OLS) involving the student’s T-test, to test the significance of the individual parameter estimate, the F-test, to test the significance of the entire regression plane, the R2 and Adjusted R2, to test the joint influence of the explanatory variables on the dependent variable. Finally, Durbin-Watson’s statistics (DW) was used to check the presence or absence of serial correlation on the data. The study observed that taxation on economic growth in the Nigeria has a positive and significant relationship on gross domestic product of the economy. Thus, this study recommends that urgent attention should be intensified by the government toward improving the tax revenue collection especially the non-oil tax revenue of the economy in order to enhance the blockage of all loopholes in over tax laws as well as bringing more prospective tax payers into the tax net and formulate fiscal policy that will monitor the channelling of public funds to avoid waste of resources as observed from this research work. This would protect the economy from further negative trends of taxation in the economy.