IMPACT OF GOVERNMENT REVENUE ON ECONOMIC GROWTH IN NIGERIA

Abstract

Revenue generated by government ought to reflect economic growth in any economy, unfortunately in Nigeria, there is insistent detach between huge revenue generation from both oil and non-oil which could not reflect sustainable economic development path. The study considered the impact of government revenue on economic growth in Nigeria Using an ex-post facto research strategy, this study looked at how public authority revenue affected economic growth in Nigeria. Information derived from secondary sources and published in the 2024 Statistical Bulletin by the Central Bank of Nigeria (CBN) covering the years 1981–2023. Government Revenue was used as an independent variable to represent both oil and non-oil revenue, while GDP was used as a dependent variable to represent economic growth. Preliminary analysis was carried out on the sourced data to ensure that the data are stationary and there is co-integration between the observed variables. The data was analyzed with the help of Fully Modified Ordinary Least Squares, Dynamic Ordinary Least Squares, DOLS and Canonical Cointegrating Regression. Meanwhile, Dynamic Ordinary Least Squares, (DOLS) was chosen because it produced the largest R-squared value among the three competing estimation methods. The outcome of the study showed that both oil and non-oil revenue impacted the economic growth in Nigeria. The study suggested that government should put to good use money derived from various sources such as to fund essential services, invest in infrastructures so as to impact economic growth