Aruwa, Suleiman A.S.Adamu, Abdul2023-12-112023-12-112013-02-03Samimi, A. J., and Abdolahi, M. (2011). Value Added Tax & Export: the Case of Selected Countries around the World. Journal of Economics and Behavioral Studies Vol. 2, No. 6, pp. 298-305 Smith, A.M.C., Islam, A. and Moniruzzaman, M. (2011). Consumption taxes in developing countries - the case of Bangladesh VAT Working paper 0 82 Centre for Accounting, governance and Taxation Research, Victoria University; Wellington, New Zealand Umeora., C. E (2013). The Effects of Value Added Tax (V.A.T) on the Economic growth of Nigeria. Journal of Economics and Sustainable Development. Vol.4, No.6, 2013 Unegbu, A. O. and Irefin, D. (2011). Impact of VAT on Economic Development of Emerging Nations. Journal of Economics and International Finance Vol. 3(8), pp. 492-503 Zaman, Q, Okasha, and Iqbal, M (2012). Value Added Tax-Theoretical Aspects and Empirical Evidence for Pakistan. Journal of Managerial Sciences Volume 44 VI Number 1https://keffi.nsuk.edu.ng/handle/20.500.14448/2357Expanding VAT revenue is indicative of increased consumption and economic activities of country. Whether the VAT productivity and capacity translates to economic growth is the issue being examined. The study examines links for the period 1994-2011. Specifically; the study investigates the directional relationship between VAT productivity, capacity and GDP, and the growth pattern of VAT revenue and GDP. Granger causality test is used to ascertain the directional relationship. The study made use of OLS to examine the relationship between growth patterns of VAT revenue and GDP. We observed that the level of the GDP granger causing VATr is higher, implying that the effect of GDP on VATr precedes the effect of VATr on GDP. The study also observed that the growth pattern of GDP from 1994 to 2009 was oscillating. It increased geometrically between 2010 and 2011. VAT revenue growth had a consistent increase, though the growth was not as explosive as that of the GDP.enValue Added Tax, Economic growth, Granger causality, productivity.Article