This research examined the direct and indirect impact of taxation on the Nigerian economic growth. This research
centered on two major objectives by focusing on the trend of direct and indirect tax and the impact of the Nigerian
tax system on the growth of the economy. The research adopted the descriptive research design. The secondary
source of data was also engaged as this data was from CBN statistical bulletin and the annual reports from
1994-2013. The research also used the ordinary least square regression technique. With the use of E-views 7.1
to analyze the data, the first objective was achieved by using graphical analysis while the second objective used
ordinary least square regression analysis. The results reveal that the direct and indirect tax have a positive impact
on the economy of Nigeria. Therefore, it is recommended that government should take advantage of taxation and
promote tax system in Nigeria.