Government Revenue Generation and Expenditure: The Nigerian Experience

This study analysed the impact of Nigeria’s revenue generation on government expenditure. Total government revenue and government domestic debt were used as independent variables, while government expenditure was used as the dependent variable. Annual time series data were sourced from the Central Bank of Nigeria annual statistical bulletin. The E-view statistical software was employed to analyze the data empirically. The unit root test shows that government expenditure and government domestic debt were stationary after second difference 1(2) respectively while total government revenue was stationary after first difference 1(1). The research uses descriptive statistics and the autoregressive distribution lag (ARDL) model to determine the relationship between government revenue, domestic debt and government expenditure. The results of the ARDL estimates indicate that in the long run total government revenue and government domestic debt are all positively signed and statistically significant. The study recommends, among others, that the government should explore other sources of revenue, especially in the non-oil sector, so as to transform the Nigerian economy and complement oil revenue.