Accountability and revenue generation in Nigeria

Abstract

Nigeria’s tax revenue to GDP has averaged at about 6% until recently when it was reported at 10.68% which is still low compared to developed economies that have an average of 30%. Hence, the focus of this study is to assess the influence of accountability on the level of revenue generation in Nigeria. The research design used in this study is the ex post facto research design. The study covered a twenty-year period which spans from 2002 to 2021. Multiple regression was used to analyze the data in the study. The result of the analysis showed that government effectiveness, regulatory quality and the rule of law all have a positive influence on oil revenue in Nigeria. It also revealed that political stability, regulatory quality and rule of law all have a positive influence on non-oil revenue in Nigeria. Overall, the results showed that accountability significantly influences oil and non-oil revenue. Hence, the study concluded that accountability has a significant influence on revenue generation in Nigeria. It was recommended that laws be reviewed to reflect the current day realities and as such enhance revenue generation in Nigeria.