RESPONSIVENESS OF THE GROWTH OF THE NIGERIA ECONOMY TO THE REVENUE PROFILE OF THE GOVERNMENT

This study was set out to evaluate the impact of government revenue on the growth of the Nigerian economy. Using time-series data covering the period 1981 to 2018 and adopting the ARDL framework, the study tested for both short-run and long-run relationship including adjustment profile. It was found that economic growth is a positive and significant function of oil revenue in Nigeria within the studied period. Nonoil revenue was found to positively but non-significantly affect the growth of the Nigerian economy. A long run cointegrating relationship was found amongst the studied variables with the error correction model showing an 11% adjustment speed from short-run disequilibrium to long run equilibrium. Based on the finding, it is recommended that government should diversify the economy to allow for enhanced revenue and growth.