Effect Of Petroleum Profit Tax On Economic Growth Of Nigeria (2000-2014)

ABSTRACT

This research investigated the effect of petroleum profit tax on economic growth of Nigeria. Time series data of petroleum profit tax (PPT) and real gross domestic product (RGDP) was used as proxy for economic growth ranging (2000-2014) were extracted from CBN annual report, CBN statistical bulletin, Federal ministry of finance& the publication of the National Bureau of statistic. The study adopted the ordinary least square based simple regression method of data estimation. The probability of the F test was used to test the signflcant of the model and the F test is .0000 and it is the sufficiently lower than 5% level of sign/icant. The study therefore found out that petroleum profit tax has signflcant effect on economic growth of Nigeria. Recommendation was made based on the findings that concerted effort should be made to improve the effectiveness and efficiency of the administration and collection of taxes by government and overhaul of the governance agency responsible for the overseeing oil operation to allow for correct data capture be carried out.