Tax Revenue and National Budget Performance in Nigeria


  • Adekunle A. Adeyemi
  • Israel O. Asogba
  • Mayowa Ebenezer Ariyibi


The study examined the impact of tax revenue on national budget performance. The study employed the time-series data of thirty-four (34) years between the period of 1985-2018. The theories that anchors the work include; Socio-political theory, Expectancy theory, Benefit Received theory and Ability-to-pay theory. Secondary data was used for this study. The Ordinary least square was employed for the analysis, but the unit root test which is a pre-estimation technique subjected the study to employ the Auto-regressive Distributed Lag (ARDL). Objective one revealed that CIT (Consumer income tax) has negative significant effect on CAPEX (Government capital expenditure) at (β= -2.24, P<0.05) and VAT (Value added tax) has positive significant effect on CAPEX (Government capital expenditure at (β=6.05, P<0.05). It is recommended that direct and indirect tax in any country should be given priority because they are consequential sources of revenue for the government.