This study is aimed at empirically analyzing the impact of Value Added Tax (VAT) on economic growth (GDP)
in Nigeria from 1994 – 2012. Relevant data were collected from Central Bank of Nigeria (CBN) statistical
bulletin and Federal Inland Revenue Service (FIRS) reports. The Ordinary Least Square techniques were used to
estimate three models in line with the formulated hypotheses. The results from the models revealed a strong
positive significant impact of VAT on economic growth as proxy by GDP in Nigeria. It also revealed that there
is positive relationship or impact of VAT on total tax revenue over the period studied. Consequently, it was
recommended among other things that government should put in place measures to effectively utilize generated
VAT revenue for infrastructural and economic development. It also recommends the review of tax incentives to
attract both local and foreign investors in order to boost economic growth in Nigeria.