Non-Oil Revenue and Economic Growth in Nigeria

Abstract

This study evaluated the significance of non-oil earnings on the Nigerian economic development. The research's data came from the yearly filings of the Central Bank Statistical Bulletins and publications of the Federal Inland Revenue Services. An ex-post facto research design was employed in the study. The Error Correction Model and Vector Auto-regression Estimates were utilized to analyze the data collected after the series underwent a co-integration and unit root test. The results of the study showed that there is a high and positive association between value-added tax and GDP in both short- and long-term estimates. The results also revealed an essential but short-term adverse interaction between the GDP and money generated by the telecoms industry. Instead of concentrating only on the oil sector, the report advises the Nigerian government to put money in innovation and ICT in order to diversify the country's economy. Additionally, taxes should be properly managed to increase economic expansion, reduce inflation, and generate employment in the nation.