This study examines the nexus of taxation mechanisms and economic growth in
Nigeria by using annual time series data for over 30 years, from 1989 to 2019.
Companies Income Tax (CIT), Value Added Tax (VAT) and Personal Income Tax
(PIT) are the independent variables while Economic Growth (GDP) was the
dependent variable. The study utilized regression technique as a tool of analysis.
Results show that Companies Income Tax, Value Added Tax and Personal Income
Tax are significantly and positively affect the economic growth in Nigeria. It was
concluded that the results validated the theory that taxation is an instrument of
economic growth in Nigeria. is the study recommends that Nigeria should lower the
tax rate in the case of corporate taxation, personal income taxes and social security
contributions. More so, tax authorities should further be strengthened to enforce
compliance by taxpayers.