Taxation: The Instrument of Economic Growth in Nigeria

ABSTRACT: The provision of basic infrastructures are very important to the economic development of a nation. The extent to which the government is able to provide these amenities is determined by the number of resources at the government’s disposal. The inability of the government to provide these basic amenities have led to the winding up and relocation of many multinational companies operating in Nigeria to other African countries. As a result, this study investigated the effects of corporate income tax (CIT) and customs and excise duty (CED) on economic growth. The study used a descriptive research design, and data from 1971 to 2020 were gathered from the Central Bank of Nigeria (CBN) statistical bulletin and Federal Inland Revenue Service (FIRS) publicationThe study concluded that the provision of basic infrastructures will boost the economy and will drive individual taxpayers towards a positive response to tax payments. This will increase the level of tax compliance and result in additional revenue for the government.This study recommended that the government should make developmental projects their top agenda item as the availability of infrastructural facilities is a necessary condition for investment that will grow the economy.

KEYWORDS: Company Income Tax, Custom and Excise Duty, Economic Growth, Gross Domestic Product, Taxation,