Impact of Taxation on Investment, Social and Economic Development in Nigeria

This study examined the impact of taxation on investment, social and economic development in Nigeria from 1993-2018. Using secondary data from the Central Bank of Nigeria and National Bureau of Statistics, the research applied Ordinary Least Square Linear Regression models to analyze the relationships between Value Added Tax (VAT), Company Income Tax (CIT), Personal Income Tax (PIT) and two dependent variables: Gross Domestic Product (GDP) and Gross Fixed Capital Formation (GFCF). The findings demonstrate that VAT and PIT have statistically significant positive effects on both GDP and GFCF, while CIT showed a negative but insignificant relationship. The study concludes that tax revenues serve as important tools for capital formation and economic growth, and recommends efficient utilization of tax revenue alongside improved tax accountability to enhance citizen trust and encourage sustainable economic development in Nigeria.