Effect of Petroleum Profit Tax on the Nigerian Economy

Abstract

The study empirically examines the effect of petroleum profit tax (PPT) on the Nigeria economy. Income from petroleum taxes is the proxy for PPT while economic growth was measured using Gross Domestic Product (GDP). The research adopted expost-facto research, as secondary data were used for the analysis. Data were sourced from the Central Bank of Nigeria (CBN) Statistical Bulletin, as well as records of the Federal Statistical Bureau. The study covered fifteen year period (2004-2018). Time series data were analysed using the simple linear regression. The result reveals that PPT had positive and significant effect on Nigerian GDP. The study recommends that the government should provide the necessary human and material infrastructures that are needed to support petroleum business so they can earn more income that will boost taxation.