Assessing the Impact of Federal Tax Revenues on Nigeria's Economic Development

Taxation is a crucial fiscal policy tool that plays an essential role in the economic growth and development of a nation. Governments around the world rely on taxation to generate the necessary funds to finance public expenditures and development programs. Effective tax collection and management are pivotal to ensuring that governments can meet their spending needs while stimulating economic progress. Taxation, defined as a legally compulsory payment imposed on individuals and businesses, serves not only as a primary source of revenue but also as a means to redistribute wealth, promote equitable development, and support the functioning of various government sectors. In Nigeria, efficient tax management remains a key factor in enhancing the nation's growth trajectory, as it ensures adequate funding for infrastructure, healthcare, education, and other critical sectors. Despite the potential benefits of taxation, the effective mobilization and utilization of tax revenues are often hindered by inefficiencies in tax collection mechanisms, evasion, and administrative challenges. As such, it is imperative that the government continues to refine its tax policies and improve the transparency and accountability of tax management. This paper explores the relationship between taxation and economic growth, emphasizing the importance of sound fiscal policies and effective tax administration in accelerating Nigeria's economic development