Government Revenue and Economic Performance of Nigerian Economy (2000 – 2019)

Abstract

The government of Nigeria has of recent encountered dwindling revenue generation due to the global economic crisis and COVID-19 pandemic, thus making it difficult for the government to finance its expenditures and subsequently not achieving the desired economic growth. This paper therefore examined the correlation between government revenue and economic performance of the Nigerian economy. The paper employed a mix of descriptive cum historical approach. Time series data spanning 2000 - 2019 were obtained and used. The sources of data were the Central Bank of Nigeria (CBN), National Bureau of Statistics (NBS) and Federal Ministry of Finance. Data were subjected to analysis and testing by means of Ordinary Least Square (OLS) multiple regression technique. Results revealed that significant positive relationship exists between the explanatory variables and explained variable. Arising from the findings, the paper made recommendations which include, among others, government’s intensification of its policy of economic diversification from the oil sector to non-oil sectors so as to increase and sustain non-oil revenue; formulate enabling tax policy that will increase tax revenue as well as strengthening the anti-corruption institutions with a view to alleviating corruption which constitute monumental leakages in the revenue generation process.