THE IMPACT OF NON-OIL REVENUE ON THE ECONOMIC GROWTH: EVIDENCE FROM NIGERIA

Abstract

This study investigates the impact of non-oil revenue on the economic growth of Nigeria. Specifically, the study examined the effect of customs and excise duties on the GDP of Nigeria; evaluate the effect of value-added tax on the GDP of Nigeria, and ascertain the effect of company income tax on the GDP of Nigeria. An ex-post facto research design was employed, and the study made use of secondary data obtained from the Central Bank of Nigeria (CBN) statistical bulletins, spanning from 1993 to 2022. A sample regression (error correction model) analytical tool was employed. The error correction model technique was used in estimating all the models in order to investigate the relationship between the dependent variables and independent variables. A Unit root test was conducted to show whether a time series variable is non-stationary and possesses a unit root and to validate the data used in the study's analysis to prevent erroneous regression findings. This research concluded that company income tax has a significant effect on GDP in Nigeria, while value-added tax (VAT) and customs and excise duties have no significant effect on GDP in Nigeria for the period under review (1993–2022). The study recommends, among others, that the government should look for ways of introducing policies that will improve non-oil revenue, especially the value-added tax (VAT) and customs and excise duties (CED), in order to boost our gross domestic product.