Nigerian Journal of Banking and Financial Issues (NJBFI)

GOVERNMENT REVENUE AND INFRASTRUCTURAL DEVELOPMENT IN NIGERIA

Abstract

This article examined the influence of government revenue on infrastructure development in Nigeria. The enquiry proxied the independent variable with three variables namely; oil revenue, non-oil revenue and money supply while the dependent variable was proxied with infrastructural development index. The data used were secondary time series data for the period 1999 to 2024. The data were sourced from the Central Bank of Nigeria from the Central Bank of Nigeria CBN Statistical Bulletin, 2023, ABS Economic Report, 2024 and African Infrastructural Development Report, 2024. The article conducted pre-estimation tests, such as unit root test to understand the integration levels of the variables, that is, the stationarity of the variables. The primary estimation method employed was auto-regressive distributed lag (ARDL), while the post-estimation tests includes; Breusch-Pagan-Godfrey, Breusch-Godfrey serial correlation tests, and Jarque Bera test which were used to ensure residual met regression assumption. The findings revealed that both government oil and non-oil revenue have no significant influences on infrastructural development, and their coefficients were negative, suggesting that the government has not prioritized both the social and economic infrastructural needs of the nation. However, money supply has been found more impactful, as it exhibited a positive and significant influence on infrastructural development better than the revenue of the government. Therefore, the article concluded that government revenue has no statistically significant influence on infrastructural development in Nigeria during the period under review. Therefore, the article recommended that government at all levels should carry out a detailed audit of government capital and recurrent expenditure from 1999 to 2024 to identify why the government revenue has not encouraged infrastructural development in Nigeria.