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The Effects of Non-Oil Revenue on Tax Yield in Nigeria Economy

Oso, Oluwatoyin Ajayi, Mamidu, Aruna Ishola Ph.D, Udochukwu, Jude Ihe, Adesina, Adejoke Adeyinka

Abstract

This study investigates the effect of non-oil revenue on tax yield in Nigeria using annual time series data spanning 2020 to 2024. The analysis employs an econometric approach based on the Ordinary Least Squares technique to examine the relationship between tax yield and non- oil revenue. The empirical findings reveal that non-oil revenue has a positive and statistically significant effect on tax yield, indicating that increased revenue from non-oil sectors enhances government tax performance. The model demonstrates strong explanatory power, with a high coefficient of determination and overall statistical significance. The study concludes that strengthening non-oil revenue sources is essential for improving tax yield and achieving fiscal sustainability in Nigeria. It recommends policies aimed at economic diversification, improved tax administration, and enhanced compliance to maximize revenue from non-oil sectors.

Keywords

Non-oil revenuetax yielddiversificationfiscal policyNigeria

References

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