IMPACT OF REVENUE GENERATION ON THE GROWTH OF ECONOMIC IN NIGERIA

This study investigates the effect of government revenue sources on economic growth in Nigeria for the period 2020 to 2025. Using secondary data obtained from the Central Bank of Nigeria (CBN), Federal Inland Revenue Service (FIRS), Debt Management Office (DMO), Nigerian National Petroleum Company (NNPC), National Bureau of Statistics (NBS), and the World Bank, the study examines how Total Government Revenue (TGR), Public Borrowing (PB), Oil Revenue (OR), and Non-Oil Revenue (NOR) influence Gross Domestic Product (GDP) growth. Data analysis was conducted using descriptive statistics, correlation, and multiple regression models with STATA software. The results show that TGR and OR have significant positive effects on economic growth, indicating that increased revenue mobilization and oil earnings contribute substantially to GDP. However, PB exhibited a negative and insignificant effect, suggesting inefficiency in the use of borrowed funds. NOR had a positive but statistically insignificant relationship with GDP, reflecting limited diversification success. The model yielded a high explanatory power (R² = 0.84), signifying that 84% of the variation in GDP is explained by the included variables. The study concludes that oil and total revenues remain crucial drivers of Nigeria’s economic growth, while borrowing and non-oil revenue channels require policy improvement. It recommends enhancing non-oil revenue generation through tax reforms and SME support, ensuring productive use of borrowed funds, maintaining transparency in oil revenue utilization, and strengthening revenue administration to foster sustainable economic growth.