Petroleum and Economy Essay

1782 Words8 Pages
Abstract This research work is on the Impact of Petroleum Profit Tax on the economic development of Nigeria. Its primary objective is to ascertain the Impact of Petroleum Profit Tax on the growth of Nigerian economy for the period 2000- 2010. The method of analysis used was ordinary least square method, after the analysis the research findings includes: Petroleum profit tax impact positively on Gross Domestic Product of Nigeria and it is statistically significant. Also total oil revenue impact positively on Gross Domestic Product of Nigeria and it is statistically significant. It is therefore recommended that concerted efforts should be made to improve on the effectiveness and efficiency of the administration and collection of taxes by government and overhaul of the government agency responsible for the overseeing Oil Operations to allow for correct data capture be carried out. Keywords: Petroleum Profit Tax, Total Oil Revenue, Economic Development Policy Implications and Conclusion This study had as its importance to find out the impact of Petroleum Profit Tax (PPT) on the growth of Nigeria Economy with particular reference to oil revenue for a review period of 2000 through 2010. To achieve this objective, the study focused on the analysis of impact of Petroleum Profit Tax and oil revenue on Gross Domestic Product (GDP) of Nigeria. This was carried out using relevant secondary time-series data obtained from suitable sources. In this data analysis, linear functional form of the simple regressions was employed. This method was adopted because of its good attributes as a good econometric model as affirmed by Maddala (1992) and Gujarati (1995). With regard to the empirical results, research findings emphasized on the following findings. a. That petroleum profit tax has significant impact on gross domestic product of
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