iarjbmIARJBMIARJBM2708-5147https://doi.org/10.47310/iarjbm.2021.v02i01.030The Effect of Value Added Tax on Economic Growth of NigeriaMukoluM.OOgodorB.NDepartment of Banking and Finance Federal Polytechnic, Ado-Ekiti, Ekiti-State, Nigeria.Department of Accounting, Federal Polytechnic, Ado-Ekiti, Ekiti-State, Nigeria.This study analyzed empirically the impact of Value Added Tax (VAT) on economic growth in Nigeria from 1994-2018.Data was collected from Central Bank of Nigeria (CBN) statistical bulletin. Unit root test using Augmented Dickey Fuller method of analysis was employed to analyses the data. The empirical result shows that the value of VAT had a positive significant impact on economic growth (GDP) in Nigeria. The findings also revealed that value added tax had a positive and significant impact on total revenue in Nigeria; and by extension on the economic growth and development of the country. Total revenue growth over the period also had a significant impact on economic growth as proxied by Gross Domestic Product. Hence, it’s concluded therefore that value added tax (VAT) as a subset of the entire tax system in Nigeria has significant impact on the economic growth of Nigeria since its inception in 1994.It has greatly contributed to the total revenue of this nation by reducing tax evasion by many people.