ABSTRACT

This study investigated the role ofrevenue mobilization on economic growth using times series data coveringfrom 1981-2018; and takingprevious empirical studies as its point of departure. The specific objectives of the study is to evaluate the role of revenue mobilization on economic growth. Within the methodologicalframeworkofOLS. The study employs augmented dickeyfuller (ADF), Error correction model, Co-integration test. The variables used in the study include; oil revenue (OILR). Non-oil revenue (NOILR), internally generated revenue (IGR), value added tax (VAT), and interest rate (INT) as the explanatory variables and RGDP as the dependent variable. The Data on these variables were sourcedfrom the Central Bank ofNigeria (CBN) statistical bulletin volume 29, 2018. The unitrootresultrevealed that OILR, VATandINTbecame stationary at levels, the other variables became stationary afterfirst differencing and second difference. The Johansen Cointegration test revealed that there is a long run relationship among the variables employed in the study. ECMwas employed to correct all the disequilibrium in the data. The R2 shows that 97% ofthe changes in the dependent variable, are as a result ofthe changes in the explanatory variable. The result ofthe Breusch-Godfrey Serial Correlation LM Test shows that there is no serial correlation in the model. The study made the following recommendations; Efforts should be intensified by the government towards increased collection oftax revenue this is due to the low contribution oftax revenue to GDP over the period ofstudy. This can be done through blocking all loopholes in our tax laws as well as bringing more prospective tax payers into the tax net (especially the informal sector).