Assessment of Public Revenue and Economic Growth in Nigeria

Abstract

This study examined the impact of public revenue on economic growth in Nigeria. The The study used a time series data for the period  1986-2017.The theoretical framework and the methodology of the study are based on the Benefit Cost theory, which assumes that steady state may occur in an economy and that when steady growth rate is alter the economy will fall to disequilibrium. This study employed  Augmented Dicker Fuller (ADF) test, Co integration test, error correction model and granger causality test. The results shows that there is  positive and significant relationship between public revenue (Oil revenue, Non-Oil revenue and Federal government independent  revenue) on economic growth in Nigeria. The cointgration test showed clearly that public revenue and economic growth have a long run relationship. Findings from econometric model using regress showed that there was a positive relationship between the variables and  economic growth. Based on the outcome the study recommends that government should as a deliberate policy; increase its macroeconomic policies to improve efficiency and productivity in oil revenue, Non-oil revenue and Federal independent revenue because  of their positive impact on economic growth.