Non-Oil Revenue and the Impact on the Economic Development of Nigeria.

Abstract:

Nigeria as one of the major oil producing countries in the world has been diversifying into more non-oil revenue while more attention is paid on tax revenue as it has the potential of taking the country to the Promised Land. As a result, the study sought to examine Non-Oil Revenue and the impact on the Economic Development of Nigeria, leveraging on tax revenue for the period 1994–2023. The objectives of the study examined the effect of corporate income tax, capital gain tax, value added tax and customs and excise duties on economic growth. While Tertiary Education Tax, Stamp duty, and Other Levies were used as controlled variables. Data were sourced from the Central Bank of Nigeria (CBN) Statistical Bulletin and Federal Inland Revenue (FIRS) Statistical Reports. While ARDL Regression Analysis was applied to test the hypotheses. The findings revealed that the coefficients of variation for the lag values showed that the RGDP was positively impacted by TDT and CED, while negatively impacted by CIT, CGT, VAT, and SD. The ARDL model's R2 and Adjusted R2 statistics together explained almost 69% of the variation in RGDP, according to the adjusted R2 of 0.518719. This implies that a significant portion of volatility is still unaccounted for despite the model's poor predictive power. The study concluded that the aggregate tax revenue is not showing the hope of taking the country to the promised land, as only two (CED and TDT) showed positive relationship with economic growth of the country. Thus, recommended that the Nigerian government needed to pay more attention to tax income since it has the ability to promote the necessary growth in the nation.