IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 9 NO. 5 2023

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The Nexus Between Revenue Generation and Economic Growth in Nigeria

Olayemi O. Ayoola-Akinjobi, Adeleye Micheal Adekusibe

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Abstract

The general objective of the study is to examine the relationship between revenue generation and economic growth in Nigeria. Ex-post facto research design was used with secondary data collected from CBN database (2012-2022). The dependent variable was economic growth and measured by gross domestic product GDP while the independent variables was revenue generation and measured by oil and non-oil revenue. The study adopt usage the autoregressive distributed lag ARDL model for the data analysis which shows the long-run relationship between revenue generation and economic growth in Nigeria. It was discovered that oil revenue (OILR) exerts an insignificant positive effect on economic growth in Nigeria in the long run at 5% significant value. It implies that a unit increase in oil revenue will lead to 3.709184 units increase in economic growth in Nigeria. Conversely, non-oil revenue has a positive and significant coefficient of 1.257631 units. This implies that a unit increase in non- oil revenue will bring about 1.257631 units increase in economic growth in Nigeria in the long. The study recommends that effort should be made by the governments to diversify the main revenue source from oil to other sectors of the economy such as agriculture, extractive industries in order to increase revenue generated from other sources

keywords:

Revenue generation, economic growth, oil revenue, non-oil revenue, GDP

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References:

Adegbie, F. F., Nwaobia, A. N., & Osinowo, O. (2020). Non-oil tax revenue on economic
growth and development in Nigeria. European Journal of Business and Management
Research, 5(3), 1-10.

Akpan, P.E., & Atan, J.A., (2020). Government expenditure and private consumption in
Nigeria: An empirical investigation. SSRG International Journal of Economics and
Management Studies, 7(1): 80-90.

Bingliar, P.F., & Preye, E.E., (2020). Impact of VAT on economic growth in Nigeria, evidence
from 2009-2018. Journal of Business and African Economy 6(1): 30-44

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