This paper examines the impact of taxation on the economic development of Nigeria for the period
2006 – 2018. The paper used secondary data from the Central Bank of Nigeria (CBN) and Federal
Inland Revenue Service (FIRS). The secondary data collected were analysed using multiple
regression, diagnostic test and granger causality test. The results showed that taxation is
statistically significant to economic development. On the basis of the findings, the paper concludes
that taxation as an instrument of fiscal policy stimulate economic development in terms of growth,
increase in per capita income, infrastructural development and decrease in inflation. Therefore, the
paper recommends that the government need to improve on the income tax collection process to
enable more individuals disclose their income for tax assessment and thereby increase in the
revenue generation process of government for the provision of social goods for the citizens.
