ABSTRACT
The contribution of taxation to any economy globally cannot be overemphasized. Apart from the revenue function it performs for the government, it is also used to assist the national government to achieve the country’s macroeconomic objectives in areas of fiscal and monetary policies. Past documentations have revealed that revenue from taxes in developed nations have high impact on its economic growth and development which is clearly seen by the amenities provided and improvements in living standards by such nations. Thus, the main objective of this study is to evaluate the relationship between taxation in Nigeria her economic growth and development. Time series data were applied in carrying out this research work. The research design adopted in the study is the Ex-post facto method of research. Hence, Simple linear regression analysis was used to analyse the data by the use of Pearson Product Moment Model, while T-test was used to test validity and reliability of instrument. The study tried to treat two hypotheses, one of which states that Taxation has no positive, significant relationship with employment in Nigeria. Findings revealed that company income tax, value added tax and custom & excise duties and petroleum profit & royalties tax, have no positive significant relationship with employment in Nigeria. Therefore, a conclusion was drawn highlighting there is no significant relationship between tax revenue and Total employment in Nigeria with a view to selected taxes used. It is however, recommended that tax revenue be used effectively to pursue economic development in terms of employment by investing in key sectors of the Nigerian economy which will transform the economy positively.
