Revenue Profile and Government Expenditure in Nigeria

Abstract

The study examined revenue profile and government expenditure in Nigeria, covering 1987 to 2017. Objectively, the study analyzed the trend of oil revenue, non-oil revenue, capital expenditure, and recurrent expenditures; and equally investigated the effect of revenue on expenditure pattern in Nigeria using four single models in which capital expenditure and recurrent expenditure were made a full function of oil revenue and non-oil revenue. Correlation matrix and simple regression were used to analyze data generated from CBN statistical Bulletin 2017. The findings revealed that both oil revenue and non-oil revenue exerted a significant effect on capital and recurrent expenditure in Nigeria. It was concluded that both capital and recurrent expenditure were predominantly financed through both oil revenue and non-oil revenue. Thus, the study recommended that government should invest more on capital projects that could induce foreign investors through which the economy of the state will be more booming and that government should work out modalities that will ensure offices and personnel are duplicated and huge expenditure incurred on the assembly men are grossly reduced.