Revenue Leakages and Economic Growth in Nigeria: The Place of Forensic Accounting

Abstract

In this study, the effect of revenue leaks on Nigeria's economic growth from 2011 to 2021 was examined. This was done in accordance with the metrics of Oil Revenue Leakage, Non-oil Revenue Leakage, and Total Revenue Leakage, as well as their effects on Nigeria's economy as measured by Real Gross Domestic Product. The World Bank Statistical Bulletin, the American National Bureau of Statistics and the websites of the Central Bank of Nigeria and the Federal Inland Revenue Service were used to create data for the years 2011–2021. The dataset for regression was defined using descriptive statistics, and the stationarity of the data was tested using the unit root method. Correlation analysis and a multiple regression analysis were employed to see how closely the independent variables moved in tandem with the relevant dependent variable. Findings revealed that non-oil revenue leakage had a beneficial impact on economic growth while oil revenue leakage had a negative impact but was not statistically significant. Accordingly, the study's findings on the connection between Nigeria's GDP growth and revenue leaks were inconclusive. The report suggests that to promote a high rate of tax compliance and reduce the twin problems of tax evasion and avoidance to a tolerable level, the government should generate job opportunities for everyone through the smart use of tax resources.