IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 8 NO. 6 2022
DOI: https://doi.org/10.56201/jafm.v8.no6.2022.pg14.25

---

ARDL Approach to Government Revenue and Economic Performance of Nigeria: Post Structural Adjustment Programme

Ebieri Jones

---

Abstract

This study examined effect of government revenue on economic performance of Nigeria during the post structural adjustment programme and extracted relevant data in Central Bank of Nigeria statistical bulletin from 1986 to 2018. The data were transformed to annual growth rates and subjected to stationarity test using the augmented Dickey Fuller unit root test so as to ascertain the suitable analytical technique. It was found that percentage change in real gross domestic product was integrated at first difference while percentage changes in oil and non-oil revenue were each integrated at level. Hence, we employed ARDL Bounds test to examine the relationship of the variables and established that oil revenue has no short run effect on economic performance while on the long run, there was positive but insignificant effect on economic performance of Nigeria during the period studied. The result also established that non-oil revenue has positive insignificant effect on economic performance both on short and long run equilibrium positions. However, the study provided evidence that collectively, government revenue has significant effect on economic performance of Nigeria and therefore recommends that government should enact and implement the petroleum industry governance bill and employ revenue on critical infrastructure that would stimulate growth of the economy.

keywords:

Oil revenue, Non-oil revenue, Economic performance, ARDL Bounds Test, Nigeria

---

References:

Asogwa,F & Okpongette, L. D. (2015). Oil revenue and Nigeria macroeconomic performance:
An econometric analysis. International Journal of Science and Research (IJRS) 5(8)
www.ijrs.net/archieve/v5i8
Azubike, J. U. B & Onukwube, P. O. (2019). Effect of government revenue on the economic
growth of Nigeria, International Journal of Social Sciences and Management
Research 5(1), 11-22
Central Bank of Nigeria (2010). Annual reports and financial statements
Central Bank of Nigeria (2010). Statistical Bulletin-Real Sector Content and Explanatory
Notes. www.cbn.gov.ng
Central Bank of Nigeria (2018). Statistical Bulletin-Public Finance statistics. www.cbn.gov.ng
Ihendinihu, J.U, Jones E. & Ibanichuka, E.A (2014) Assessment of the long-run equilibrium
relationship between tax revenue and economic growth in Nigeria: 1986 to 2012. The
Standard International Journals 2(2), 39-47.
International Monetary Fund (2009). Deflation, economic growth, BOP, Celebrating the Spirit
of Small Enterprise, 1-2
International Monetary Fund (2019). Government revenue excluding grants (% of GDP). IMF
Data Mapper Africa Regional Outlook, Government and Public Sector. https://imf.org.
Ishola, K. A. (2019). Taxation principles and fiscal policy in Nigeria, Illorin: Kastas
Publishers Nigeria Limited.
Jones, E & Ekwueme, D.C. (2016). Impact of tax reforms on the economic growth of Nigeria.
Journal of Accounting and Financial Management 2(2) 15-23. www.iiardpub.org
Jones, E., Ihendinihu, J. U. & Nwaiwu, J. N. (2015). Total revenue and economic growth of
Nigeria: Empirical evidence. Journal of Emerging Trends in Economics and
Management Sciences (JETEMS), 6(1), 40-46. www.Jetems.scholarlinkresearch.com
Jones, E., Nwawuru, C. E. & Nmesirionye, J. A. (2018). Effect of value added tax on the
economic growth of Nigeria: an empirical investigation. EPRA International Journal
of Economic and Business Review, 6(2), 73-81. www.eprawisdom.com
Joseph, I. F. & Omodero, O. C. (2020). The nexus between government revenue and
economic growth in Nigeria. Science Economics and Business, 35-44.
Mikesell, L. J. (2011). Fiscal administration analysis and applications for the public sector 8 th
edition, Boston USA: Wadsworth Cengage Learning
Nmesirionye, J. A., Jones, E. & Onuche, V. E. S. (2019). Impact of indirect taxes on the
economic performance of Nigeria, European Journal of Accounting, Finance and
Investment 5(4): 32-39
Nwoba, M. O. E. & Abah, E. O. (2017). Impact of crude oil revenue on economic growth in
Nigeria (1960-2010). IOSR Journal of Humanities and Social Science 22(7): 85-99
Organization for Economic Co-operation and Development (2019) Revenue statistics in Africa
2019, OECD Centre for Tax Policy and Administration, http://oe.cd/global-rev-stats-
database
Osuala, A. E. & Jones, E. (2014), Empirical analysis of the impact of fiscal policy on the
economic growth of Nigeria. International Journal of Economics and Finance, 6(6);
203-211. www.ccsenet.org/ijef

DOWNLOAD PDF

---

Back