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This research is proposed to investigate taxation as a fiscal policy tool – on its use in solving economic problem such as inflation reduction, harmonization of policies on tax as it relates to government policies and conflict in objectives, inequality, multiple tax problem etc. This work is a critical look at the existing forms of taxes in the county. It also looked at the Nigeria tax system in terms of tax policy; tax laws and finally taxes administration. It talked about principles / characteristics of a good tax system and of course, the role of taxation in the Nation’s development. Questionnaires were administered on the relevant population sample. Also they were interviewed and data collected, analyzed and interpreted. Chi – square was used in analyzing the data collected. The collected data were tabulated according to their relevance to the hypothesis. It was discovered that some level of stability has been achieved by way of reduction in inflation. Also, the production sits for have received considerable amount of encouragement through various incentives given in order to encourage production activity. It was also discovered that provision of tax system on resource allocation, increase in disposable income, has not been sufficient. In all, it was concluded that the Nigeria tax system is fairly adequate


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