The Effect of Tax Evasion and Avoidance on Nigeria’s Economic Growth

Abstract

This paper examined the impact of tax evasion and avoidance on growth of the Nigerian economy. The study adopted the ex-post facto research design and data were obtained from Central Bank of Nigeria Statistical Bulletin for the period 1999 - 2012. The Ordinary Least Square Regression (OLS) model was used to test the hypothesis. The result emanating from the findings suggests that tax evasion and avoidance had negative significant impact on growth of the Nigerian economy. The study thus recommends amongst others that government policies and measures as it pertain fiscal policies in Nigeria should be streamlined to stimulate economic growth and development by ensuring that there tailored towards growth of the economy.

Keywords: Tax Evasion, Tax Avoidance, Economic Growth