Overview

Original Research

EVALUATING THE ECONOMIC GROWTH IMPLICATIONS OF REVENUE GENERATION IN NIGERIA

CHINE SP LOGAN 1, OGOCHUKWU C. OKANYA 2, AFAMEFUNA J. NDUKA 3, CHARLES O. MANASSEH 4, KENECHUKWU K. EDE 5, CHUKWUNONSO F. ONOH 6, ANIGBOGU J. OMEJE 7, JOSEPHINE N. OZIOKO 8 and SUNDAY V. AGU 9.

Vol 20, No 04 ( 2025 )   |  DOI: 10.5281/zenodo.15181058   |   Author Affiliation: Department of Public Policy, Liberty University, Lynchburg, VA 24502, US 1; Department of Banking & Finance, Institute of Management and Technology, Nigeria 2; Department of Banking & Finance, Chukwuemeka Odumegwu Ojukwu University 3; Department of Banking & Finance, University of Nigeria, Nsukka, Enugu 4; Department of Economics, University of Nigeria, Nsukka 5; Department of Economics, National Open University of Nigeria, Nigeria 6; Department of Economics, Enugu State University of Science & Technology 7;8;9.   |   Licensing: CC 4.0   |   Pg no: 47-70   |   Published on: 09-04-2025

Abstract

This study centred on investigating the impact of revenue generation on the economic growth in Nigeria using annual time series data which covered the period of 2013 – 2022. These relationships were estimated with the autoregressive distributed lag model (ARDL) and the findings were robustly checked with the fully modified ordinary least squares (FMOLS). The findings from the ARDL results reveal that while tax revenue has a positive and significant impact on economic growth, value-added tax showed an insignificant impact, while customs and other import duties showed a significant negative influence on economic growth in Nigeria. From the FMOLS results, we found that revenue generation indicators – tax revenue, value-added tax and customs and other import duties have significant negative effects on economic growth. Improving revenue generation in Nigeria requires a multifaceted approach that encompasses tax reform, regional strategies, human capital development, and environmental sustainability initiatives. By adopting these measures, Nigeria can create a more diversified economy that not only generates sufficient revenue but also provides a solid foundation for sustainable economic growth and development. Future research should continue to explore innovative revenue generation strategies and their direct impact on Nigeria's economic landscape to guide policymakers in their efforts to build a resilient economy.

Keywords

Economic Growth, Revenue Generation, Nigeria