Journal of Economics and Development Studies

By How Much will Faster Economic Growth Boost Government Revenue in Nigeria?
Ebi, Bassey Okon1; Samson Adeniyi Aladejare

Abstract
With the continuous fall in the price of crude oil which is the primary revenue source of Nigerian government, it has obviously become imperative to examine how buoyant the revenue sources of the government. This study thus examines by how much revenue yield of the government grows with recorded growth in the economy from 1980 to 2013. The study adopted the Auto-Regressive Distributive Lag approach to examine the short and long run buoyancy of government revenue sources which were decomposed into: total tax revenue, oil revenue and non oil revenue. Empirical submissions reveal very weak buoyancy of government revenue in both the short and long run periods. Based on the findings, it was recommended that pervasive corruption at both the collection and remittance point of revenue should be tackled in the system, the principle of true federalism should be encouraged, training and motivation of tax administrators is important and the development of the non oil sector should not be taken lightly.

Full Text: PDF     DOI: 10.15640/jeds.v4n2a12