EFFECT OF TAX POLICIES ON THE NIGERIA ECONOMIC DEVELOPMENT.

ABSTRACT This study assessed the effect of Tax policies on Nigeria economic growth. The main objective of this study is to examine the effect of tax policies on economic development in Nigeria. The specific objective includes: (i) to determine the extent to which tax polices affect stability of Nigeria economy as represented by GDP; (ii) To evaluate the extent to which tax polices reduces unemployment rate; (iii) To evaluate the extent to which tax polices affect standard of living of the people; (iv) To assess the extent to which tax policies affect saving rate of people. Data was sourced from the Statistical Bulletin of Central Bank of Nigeria, Federal Inland Revenue Services and National Bureau of Statistics. Time series Date from 1985-2024. The variables were tested for Unit root and Co-integration and were found to have long run relationship. The result further indicated that tax polices has no significant impact on economic stabilization in Nigeria. The study among others recommend that Government of Nigeria should have fiscal neutrality in the heart when making polices, it was also recommended that Nigeria should try to reform their tax system to militate the destitutions cause by tax policy.