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Assessment of the Impact of Government Revenue Mobilisation on Economic Growth in Nigeria

Author

Listed:
  • Rotimi Comfort Omolayo

    (Department of Economics, Federal University Lokoja, Kogi State, Nigeria)

  • John Naphtali

    (Department of Economics, Federal University Lokoja, Kogi State, Nigeria)

  • Rotimi Mathew Ekundayo

    (Department of Economics, Federal University Lokoja, Kogi State, Nigeria)

  • Doorasamy Mishelle

    (School of Accounting, Economics and Finance, College of Law and Management Studies, University of KwaZulu Natal, Durban, South Africa)

Abstract

Inadequate revenue generation impedes economic growth. It retards the overall economic growth and behavior. It delays government decision formulation on expenditure. The issue has lacked attention from academics. Consequently, this study focuses on the relationship between revenue generation and economic growth in Nigeria. It employed time series data sourced from the Central Bank of Nigeria (CBN) and the National Bureau of Statistics (NBS) from 1981–2018. Contributing to the debate on the revenue mobilization and economic growth nexus, the study used multiple regression to estimate the impact of government revenue mobilization on economic growth in Nigeria. Findings revealed that domestic debts and non-oil (NOIL) revenue positively and significantly impact economic growth while external debts and oil revenue revealed otherwise. Based on the findings, the study concluded that government revenue impacts economic growth. Consequently, the study recommends economic diversification through strategic programs aimed at enhancing growth rather than remaining a mono-economy. Furthermore, it recommends that the government should review the existing revenue mobilization strategy– especially the multifarious non-oil revenue bases to ensure improved revenue remittances. The study also recommended the need to formulate policies that will guarantee better utilization of both domestic and foreign loans with the aim of increasing productivity and enhancing revenue mobilization. It is also recommended that borrowing should be considered a last resort to fund government projects, and where it is unavoidable such borrowing should be limited to domestic debt (DD).

Suggested Citation

  • Rotimi Comfort Omolayo & John Naphtali & Rotimi Mathew Ekundayo & Doorasamy Mishelle, 2022. "Assessment of the Impact of Government Revenue Mobilisation on Economic Growth in Nigeria," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 32(4), pages 81-108, December.
    • Handle: RePEc:vrs:suvges:v:32:y:2022:i:4:p:81-108:n:3
    DOI: 10.2478/sues-2022-0020
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    References listed on IDEAS

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    1. Ariyo, Ademola, 1993. "An Assessment of the Sustainability of Nigeria's Fiscal Deficit: 1970-90," Journal of African Economies, Centre for the Study of African Economies, vol. 2(2), pages 262-282, October.
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    More about this item

    Keywords

    Public Debts; GDP; Government Revenue; Taxation; Oil Revenue;
    All these keywords.

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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