Abstract: The study examined the impact of value added tax on revenue generation in Nigeria. The secondary source of data was sought from Central Bank of Nigeria statistical Bulleting in 2010. Federal Inland Revenue Service Annual Reports and Chartered Institute of Taxation of Nigeria Journal. Data analysis was performed with the use of stepwise regression analysis. Findings showed that value added tax has statistically significant effect on revenue generation in Nigeria. The study recommends that there should be dedication and apparent honest on the parts of all agents of VAT with respect to the collection and payment and that government should try as much as possible to improve on the way of collecting value added tax.