IMPACT OF DIS-AGGREGATED PUBLIC REVENUE ON ECONOMIC GROWTH IN NIGERIA

The study examines the impact of disaggregated public revenue on Nigeria’s economic growth, spanning the period from 1995 to 2024. Time series data were employed, using the ARDL bound test for cointegration. The results of the Bound test reveal the existence of cointegration among the variables. The study takes into cognizance the dependent variable proxy for economic growth, oil revenue (OR), non-tax revenue (NTR), Labor Force, and Tax revenue (TR) as independent and controlled variables. Findings of the study have shown a negative and statistically significant relevance of oil revenue on economic growth by -13.23% in the long run. The remaining revenue generation variables, LNTR, LLBRF, and LTR, exhibit positive long-run and statistical significance in influencing Nigeria’s economic growth by 6.744, 44.512, and 20.358, respectively. Furthermore, the LOR in the current period (t) and the past period (t-1) indicates negative and positive statistical significance for Nigeria’s economic growth. Moreover, LTR had shown a positive increase in GDP. However, the LTR in the current and past periods has shown a positive incremental percentage change in GDP. Accordingly, the ECM cointegration equation satisfies the prerequisite condition of its negative, less than 1, and statistical significance in ascertaining equilibrium convergence from the short-run truncation. Therefore, the study recommends speedy implementation of the Petroleum Industry Bill, which would lead to local content exploration, production, and ownership, and ultimately will result in increased accruals in Nigeria. In addition, appropriate measures should be put in place to safeguard Nigeria’s oil facilities, and eventually, more revenue will accrue. Corruption and administrative bottlenecks should also be addressed, and diversification in non-oil revenue-generating sectors should be reinvigorated. This will lead to increased revenue in both the short and long term.