ABSTRACT
This study examined the impact of tax revenue on economic development in Nigeria. It utilized annual time series data from 1980 to 2015. Data for this study were source from Central Bank of Nigeria (CBN) publications. The study employed the ordinary least squares (OLS) regression technique in the estimation of the specified equation. The result showed that tax revenue has positive impact on economic development in Nigeria during the period under review. Specifically, the result showed that petroleum profit tax revenue, corporate tax revenue, and custom and excise duty tax revenue have positive impact on economic development in Nigeria. In real term, a one percent increase in petroleum profit tax revenue, corporate tax revenue, and custom and excise duty tax revenue led to an increase in economic development by 0.26 percent, 6.16 percent, and 0.02 percent, respectively. The study recommends that efficient tax policy should be formulated and implemented so as to continue to generate the needed revenue for the government. Also revenue collecting authorities of the government should be made more effective in their operations of collecting revenue for the government.