Evaluating the Impact of Government Revenue Collection on GDP Growth in Nigeria
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style:
- Recommended for :
- NGN 5000
Background of the Study
Government revenue collection is a critical component of fiscal policy that underpins economic stability and growth. In Nigeria, efforts to enhance revenue collection have intensified between 2023 and 2025, driven by the need to reduce fiscal deficits and stimulate GDP growth. Improvements in tax administration, the introduction of digital tax platforms, and broader tax base initiatives have been key strategies employed by policymakers to increase government revenue. These initiatives are believed to have a direct impact on economic performance by providing the necessary resources for public investment in infrastructure, education, and healthcare (Olagunju, 2023).
A robust revenue collection mechanism is expected to contribute to GDP growth by ensuring that the government has sufficient funds to invest in developmental projects and public services. Enhanced revenue mobilization can also lead to a reduction in the reliance on external borrowing, thereby stabilizing macroeconomic conditions. However, the effectiveness of these measures is contingent on several factors, including administrative efficiency, taxpayer compliance, and the overall economic environment. Critics have argued that despite improved revenue collection mechanisms, issues such as corruption, inefficiencies, and a narrow tax base continue to hinder optimal outcomes (Balogun, 2024).
This study aims to evaluate the relationship between government revenue collection and GDP growth in Nigeria by analyzing recent policy reforms and revenue data. It will explore how increased government revenue has translated into productive public spending and whether these measures have spurred sustainable economic growth. By integrating quantitative data analysis with qualitative assessments of policy implementation, the research seeks to provide actionable insights for enhancing revenue collection strategies and fostering economic development.
Statement of the Problem
Despite significant policy reforms aimed at improving government revenue collection in Nigeria, the anticipated positive impact on GDP growth has been inconsistent. While enhanced revenue mobilization is expected to drive economic expansion, persistent challenges such as low taxpayer compliance, administrative inefficiencies, and corruption have undermined these efforts (Olagunju, 2023). The gap between revenue collection targets and actual performance creates uncertainty regarding the effectiveness of these fiscal strategies. Moreover, the benefits of increased revenue are not always fully reinvested in productive public expenditure, resulting in a suboptimal contribution to GDP growth (Balogun, 2024).
These challenges are compounded by external factors such as fluctuating oil prices and global economic uncertainties, which further affect revenue generation. The lack of a systematic framework to monitor the direct impact of revenue collection on economic growth makes it difficult to assess whether improvements in tax administration are translating into tangible developmental outcomes. Consequently, there is an urgent need to critically evaluate the impact of government revenue collection on GDP growth, identify the underlying challenges, and propose measures to bridge the gap between policy intent and economic performance.
Objectives of the Study
-
To assess the impact of enhanced government revenue collection on GDP growth in Nigeria.
-
To identify the key challenges hindering effective revenue mobilization.
-
To recommend policy measures that can optimize the link between revenue collection and economic growth.
Research Questions
-
How does improved government revenue collection affect GDP growth in Nigeria?
-
What are the major obstacles in achieving optimal revenue mobilization?
-
What policy interventions can enhance the effectiveness of revenue collection in spurring economic growth?
Research Hypotheses
-
H1: Enhanced revenue collection has a significant positive effect on Nigeria’s GDP growth.
-
H2: Administrative inefficiencies and corruption negatively impact revenue mobilization.
-
H3: Improved digital tax administration correlates with higher economic growth.
Scope and Limitations of the Study
This study focuses on government revenue collection efforts in Nigeria from 2023 to 2025 and their impact on GDP growth. Data sources include government financial reports, tax administration records, and economic surveys. Limitations include external economic shocks, data reliability issues, and the challenge of isolating revenue effects from other economic variables.
Definitions of Terms
-
Revenue Collection: The process by which the government collects taxes and other revenues.
-
GDP Growth: The increase in the country’s total economic output over time.
-
Tax Administration: The mechanisms and processes involved in the collection of taxes.
-
Fiscal Deficit: The shortfall when government expenditures exceed revenue.
Related Project Materials
Design and Implementation of a Real Time Chat Application.
ABSTRACT
CHATTY was created with the mind set to not just be another chat application but to add a level of clean UI (user interface) or...
An Examination of Syntactic Structures in Nigerian Corporate Reports: A Comparative Study of Business Communications
Background of the Study
Corporate reports are essential documents that communicate an organization’s financial perfo...
An Evaluation of Adolescent Reproductive Health Education Programs in Kaduna State
Background of the Study
Adolescent reproductive health is a critical component of overall public health, particularly in regions where yo...
The effect of real-time marketing strategies during crises: A study of a financial institution in Kaduna, Nigeria
Background of the study
Real-time marketing strategies have gained significant relevance during crises, enabling organizat...
An Evaluation of Border Security on Cross-Border Trade in Mai'Adua Local Government Area, Katsina State
Background of the Study
Border security is a critical component of national security and plays an essen...
Enhancing Digital Storytelling in Teaching African History in Secondary Schools, Birnin Kebbi, Kebbi State
Background of the Study
African history is rich with cultural narratives and significant events that are often underrepres...
The Challenges of Performance Management in Public Sector Organizations: A Study of Government Agencies in Benue State
Background of the Study
Performance management is a critical component of organizational success, enabling entities to m...
The effect of robust internal enforcement measures on mitigating fraud in banking: a case study of Guaranty Trust Bank
Background of the Study
Fraud remains a critical concern for banks globally, necessitating the implementation of robust internal enforcem...
INFLUENCE OF IFRS ON FINANCIAL REPORTING QUALITY IN NIGERIA
ABSTRACT
The study focuses on the quality process of International Financial Reporting Standard (IFRS) on a develop...
CODE SWITCHING IN NORTHERN NIGERIA: A STUDY OF KANYWOOD FILM INDUSTRY
ABSTRACT
This study is an examination of the language use in the northern Nigeria film industry called Kannywood. This w...
