Revenue Leakages and their Implications on the Nigeria’s Economic Development

Abstract

This seminar paper examines revenue leakages and their implications on Nigeria’s economic development. Government revenue includes income from both oil and non-oil sources. Despite being one of the most developed and blessed countries, Nigeria is still grappling with persistent poverty and weak economic growth. The study investigates the major sources of revenue in Nigeria and explores the causes of revenue leakages affecting the country’s economic development. It also assesses the consequences of these leakages on the Nigerian economy. The paper applies the Keynesian theory proposed by John Maynard Keynes, suggesting that to achieve economic growth through taxing and government spending, policies need to be in place to generate necessary revenue for the country. Using an ex-post facto research design and relying on secondary sources of data like government and non-government publications, magazines, and journals, the study reveals that revenue leakages in Nigeria can hinder economic development by reducing government revenue, burdening citizens, and fostering corruption and inefficiency. The research also uncovers various methods through which revenue contributes to the economy. As a result, the study recommends the implementation of better governance and transparency policies to enhance financial transactions, budgeting procedures, and public procurement processes. These measures are crucial for addressing the identified challenges and promoting a more robust economic environment in Nigeria.