IMPACT OF NON-OIL REVENUE ON ECONOMIC GROWTH IN NIGERIA

ABSTRACT The study assesses the impact of non oil revenue and economic growth, Examining the relationship between service revenue and agriculture revenue yield on economic growth in Nigeria was one of the study's goals. The study made use of secondary data that was taken from the NBS and Central Bank of Nigeria statistical bulletin for a 41-year period, from 1981 to 2022. The ex-post facto research design was also applied in this study. The data analysis on STATA 17 was performed using regression using ordinary least squares. The analysis shows that services revenue has a major impact on Nigeria's gross domestic product and that there is a negative but negligible association between agricultural revenue and GDP. The study recommends that the Federal government of Nigeria rather than pay lip service to the problem of Herder-Farmer crisis in Nigeria, should take decisive step towards ending the ugly trajectory in order to improve Agricultural yield for local consumption as well as for export for foreign exchange hence, improvement in the nation’s GDP. CHAPTER ONE INTRODUCTION 1.1 Background to the study The economic development of any nation depends largely on the level of resource mobilization within that economy. That is perhaps why the issue of revenue generation is taken seriously by every government in power. The essence of revenue generation is to provide the basic social and infrastructural needs of the citizens (Nakah, 2018). Prior to 1970, revenue generation in Nigeria was dependent mainly on the non-oil sector including agriculture, and other mineral resources like coal, iron-ore, tin, etc. The foreign exchange of Nigeria at that time was earned from the sales of different cash crops such as Cocoa, coffee, palm oil, rubber, groundnut to mention but a few. This implies that the non-oil sector accounted for a greater chunk of the total revenue earnings of the country. However, following the Corona-virus (COVID-19) pandemic outbreak in late 2019 and coupled with the shrink in price of crude oil as a result of the United State of America's reduction in the number of barrels the country imports from nations affected the global market terribly. As such, a country whose major revenue is dependent on oil has had no option than to re-consider diversification of its economy to the non-oil sector. This has in no small means contributed immensely to the shaking-economy of major oil exporters like Nigeria, Saudi Arabia, Iraq and Libya. The 2019-2020 year has been a turbulent one for Nigeria due to the double shock of oil price decline and the covid-19 pandemic that has prompted a call for total reliance of non-oil revenue to provide for the government and the public. The non-oil revenues are proceeds generated from sources other than the oil producing activities. These revenues include those from companies not engaged in oil & gas explorations. These other activity sectors comprise agriculture, industry, constructions, trade and service.(NBS, 2020). The reasons why diversification in the Nigerian economy is imperative is made more manifest from the consultative forum of the Minister of finance, Budget and Planning and the Organized Private Sector held on 10th July, 2020 concerning the impact of Global pandemic caused by COVID’19 on the implementation of the national budget. The forum highlighted the following issues, that crude oil prices declined sharply in the world market, with Bonny Light crude oil price dropping from a peak of US$72.2pb on January 7, 2020 to below US$20pb in April, 2020; In effect, the US$57 crude oil price benchmark on which the 2020 budget was based became unsustainable. The impact of these developments is about 65% decline in projected net 2020 government revenues from the oil and gas sector, with adverse consequences for foreign exchange inflows into the economy. There is a growth rate projection decline in Sub-Saharan Africa of about -3.2% in 2020 and a steep recovery rate of 3.4% in 2021 (Ministry of finance, Budget and Planning, 2020). Also, Nigeria has experienced decline in real GDP from 2.55% in the 4th quarter of 2019 to 1.87% in the 1st quarter of 2020. This was based on effect of the Global pandemic of COVID’19. Generally, Real GDP was projected to contract by 4.2% in 2020 (NBS, 2020). Several empirical studies had been carried out on the effect of non-oil revenue on the economic growth of Nigeria at various range of economic period, e.g. Kawa (2017), Anthony et al.., (2015), but there seems to be a dearth of literature relating to the effect of non-oil revenue on the economic development of Nigeria. Furthermore, earlier studies on non oil revenue and economic development need an update in terms of regency and periods of study, hence the period gap created would be filled by this current study looking at variables from 1981-2022. 1.2 Statement of the problem A lot of studies had focused only on the effect of oil revenue on Nigerian economic growth and development while there have been dearth on impact of non-oil on economic growth as a result of the neglect of the sector by the government. This study however seeks to further advance on the evaluation of the non-oil revenue impact on government revenue and the resultant effect on economic growth using the current data in order to determine the current impact of the sector on the economy. This study therefore tends to evaluate the impact of non-oil revenue on government expenditure and examine the effect of non-oil revenue on economic growth. 1.3 Objectives of the study The main objective of this study is to examine the impact of non oil revenue on economic development in Nigeria. The specific objectives include: i. To determine the impact of agricultural revenue yield on gross domestic product in Nigeria. ii. To evaluate the impact of service revenue yield on gross domestic product in Nigeria. 1.4 Research questions This study seeks to answer the following research questions: i. To what extent does agricultural revenue impact on gross domestic product in Nigeria? ii. What impact does service revenue have on gross domestic product in Nigeria? 1.5 Research hypotheses In light of the above, the following null hypotheses were formulated: i. H0: Agricultural revenue contribution has no significant impact on gross domestic product in Nigeria. ii. H0: Service revenue contribution has no effect on the gross domestic product in Nigeria. 1.6 Scope of the study This study focuses on impact of non-oil revenue on gross domestic product in Nigeria and it covers a period of 41years from 1981-2022. 1.7 Significance of the study The purpose of this study is to investigate the impact of Non-oil revenue on gross domestic product in Nigeria. Hence, it well be beneficial to: Government: The study would act as a source of information on different ways the government can the importance of other forms of generating revenue, improve in those sectors to improve standard of living. Academia: This research work will also be of great benefit for the academia by helping them to understand non-oil form of generating revenue properly. Researcher: This study will widen their horizon of understanding from the information contained in the research work and help them answer research more on unanswered questions. It will also help the researcher to have a comprehensive knowledge on the role and function of government economy development and other forms of generating revenue in Nigeria 1.8 Organization of the study Chapter one contains the general introduction which provides the background to the study, statement of the problem, objectives of the study, research questions, research hypotheses, significance of the study, and definition of operational terms. Chapter two examines published past research works, it consists of conceptual framework, theoretical framework and empirical review. Chapter three describes the methodology, Chapter four presents the data while section five concludes the study 1.9 Definition of operational terms Tax revenue: revenues collected from taxes on income and profits, social security contributions, taxes levied on goods and services, payroll taxes, taxes on the ownership and transfer of property, and other taxes. Economic growth: increase or improvement in the inflation-adjusted market value of the goods and services produced by an economy in a financial year. Value added tax: consumption tax on goods and services that is levied at each stage of the supply chain where value is added, from initial production to the point of sale. Agricultural revenue: Revenue generated from agricultural produce such as cocoa and cotton. CHAPTER TWO REVIEW OF RELATED LITERATURE 2.1 Conceptual review 2.1.1 Non-oil revenue Non-oil tax revenue is revenue from direct and indirect sources paid by other sectors of the economy other than the oil sector. Direct taxes are those that are imposed directly on a person or a company, and the individual or company is expected to pay the tax as recommended by the notification, known as an assessment notice. (Abomaye-Nimenibo et al., 2018). Direct taxes are personal income tax (PIT), company income tax (CIT), capital gains tax, withholding tax and education tax. While, the indirect taxes are taxes in which the burden of the taxes are distributed among the taxpayers who pays the tax knowingly or unknowingly. Tax burden is collected from the taxpayers proportionally, progressively, or regressively. Indirect taxes are value added tax (VAT) and custom and excise duties. 2.1.2 Agricultural revenue yield Nigeria's agricultural sector contributes to a significant part of the country's GDP. Between July and September 2021, the agriculture contributed to almost 30 percent of the total GDP, an increase by about six percentage point compared to the previous quarter. Agriculture is a key activity for Nigeria's economy after oil. Nevertheless, agricultural activities provide livelihood for many Nigerians, whereas the wealth generated by oil reach a restricted share of people. The population of Nigeria is growing at very high rates and the food demand is rising accordingly. Indeed, the Nigerian population is forecast to reach over 370 million people by 2050. Estimations published in 2019 show that by 2050 the consumption of livestock products is going to increase significantly. For instance, the consumption of milk might grow by over 260 percent, for eggs by 250 percent. Likewise, meat demand will reach high levels too. This scenario could have negative consequences on the food supply in the country. Over the last years, the average share of the Nigerian population suffering from severe food insecurity has been rising. Between 2018 and 2022, nearly 20 percent of people experienced hunger. People in severe food insecurity would go for entire days without food, due to lack of money or other resources. In fact, the food CPI is increasing month by month in Nigeria.(Doris 2023) In the second quarter of 2023, Nigeria's agricultural sector grew by 1.5 percent in real terms compared to the same period of the previous year. During the selected period, the contribution of agriculture to Nigeria's GDP experienced the highest increase in the fourth quarter of 2021, with a growth of over 3.5 percent. Agriculture contributes to a significant part of the country's GDP. It is a key activity for Nigeria's economy after oil. Nevertheless, agricultural activities provide a livelihood for many Nigerians, whereas the wealth generated by oil reaches a restricted share of people.(Statistic research department 2023) 2.1.3 Value added tax (VAT) Valued Added Tax (VAT) is a consumption tax that is imposed on any purchase of goods and services. A tax been paid on consuming a particular product. Okoye and Ani (2021), defined Valued Added Tax as an indirect form of taxation based on the general consumption behavior of the people. Margaret Charles and Gift (2021) believed that the impressive performance of Valued Added Tax in all the countries it was introduced actually influenced the decision of the government to introduce Valued Added Tax (VAT) in Nigeria in 1994. The federal Inland Revenue Service (FIRS) documented that VAT, which replaced the old sales tax, is a consumption tax which is relatively easy to administer, easy to collect and difficult to evade, this bringing an increase in government revenue thereby helping Nigeria's economic growth. The FIRS is responsible for the administration of Valued Added Tax (VAT) in Nigeria. According to Abata, (2014) VAT, or value-added tax, is a type of consumption tax in which the tax burden is carried by the consumer. He added that the tax burden is transmitted from the producer to the middlemen (wholesaler and retailer), who then pass it on to the consumer. As a result, Vat cannot be avoided unless individuals refrain from purchasing and consuming value added tax goods and services. The VAT system in Nigeria is a multi-step system in which VAT is collected at each stage of the manufacturing process, from the manufacturer to the consumer . VAT is currently set at 7.5%. Value-Added Tax (VAT) is a tax that is applied to the value that an item or service's supplier or seller adds to it before selling it. The introduction of VAT was necessitated by the need to boost the revenue of the government from non-oil sources following the fluctuations in the oil revenue due to the glut in the international market. VAT was introduced into the Nigerian tax system in 1994 fiscal year with the promulgation of VAT Decree No. 102 of 1993 to replace the Sales Tax Act, 1986 at the 5% rate and is being administered by the Federal Inland Revenue Services (PWC, 2018). Value added tax is a multiple stage tax that is charged on the additional value of goods produced or services rendered as they advance through numerous stages of production & distribution and the rendering of services which is ultimately borne by the last consumer but collected at each phase of production and service chain (Bird, 2005). According to Umeora (2013), value added tax is a tax on estimated market value added to a product or service at every phase of manufacturing or distribution and the additions are eventually added to goods and services which bear the tax burden or the incidence because the tax paid on consumption of goods and services cannot be recovered. The value added of a firm is the difference between a firm’s sales (output) and purchases (input) from other firms. The value added of a firm is the amount of value it contributes to the goods produced or services rendered using some factors of production such as land, labor, capital and entrepreneurial ability of the firm. A section of VAT Decree No. 102, 1993, specifically exempted some goods and services from tax. These goods and services are those that bother purely on people’s well-being and are essentially required to advance human growth and development. The category of goods and services exempted from tax include, but not limited to; medical products and services, pharmaceutical products, basic food items, books and educational materials, plants and machinery for use in export processing zones (EPZs) or free trade zones (FTZs) and commissions on stock market transactions (PWC, 2018). According to the Federal Inland Revenue Service (1993), VAT is a consumption tax that is relatively easy to administer and difficult to evade and it has been embraced by many countries world-wide. 2.1.4 Taxes revenue Tax policy refers to the choice by a government as to what amounts and on whom tax is to be levied. Tax policies implemented for a variety of reasons, the key objectives, including a source of revenue generation for financing government spending, resource allocation, re-distribution of income and reducing inequalities arising from the distribution of wealth among consumers. Also, Tax is a compulsory levy made by all concerned to the government of a country from which essential services are rendered, without necessarily offering an explanation on how the money generated was spent or equating the services with the money collected. It is an instrument employed by the government for generating public funds (Anyaduba, 2004; Ofoegbu et al.,, 2016). Tax Revenue generated by government of a jurisdiction from oil and non-oil activities. Tax revenue is the receipt from tax structures. Revenues accruing to an economy like Nigeria can be categorized into two main parts: oil revenue and non- oil revenue. Ihendinihu, et al..,(2014) confirmed that the federal government revenue is classified into two mains sources as oil and non-oil revenue. Oil revenue to the government is revenue derived from royalties, receipts from petroleum profits tax, and local sales and exports of crude oil and gas, while the revenue from non-oil includes revenue from Levies, public debt, grants, Personal Income Tax (PIT), Custom and Excise Duties, (CED), Companies income tax (CIT), Valued Added Tax, Education Tax, aids, amongst others. A country’s tax system is a major determinant of the macroeconomic indexes for developed and developing economies; hence, there exist a relationship between the tax structure and the level of economic growth of any nation (Libabatu, 2014). 2.1.4 Economic growth Economic growth is defined as a rise in national income or output per capita over a long period of time. It's an economic condition in which the rate of rise in national output must outpace the rate of population growth. Economic growth is the long- term expansion of the economy's productive potential. It entails a gain in Real GDP, which translates to increased national output and wealth. The market worth of all products and services produced in a country during a given time period is known as real GDP. Real GDP is a measure of a society's wealth since it shows how quickly profits can expand and the expected return on investment (Okerekeoti, 2022). Economic growth simply increases the value of a country’s goods and services produced over time, and it may be used to measure a country’s size. (Yahaya and Yusuf, 2019). Economic growth is defined by Dwivedi (2004) as a sustained increase in the nation’s per capita output through time, or as the net national product over time. It indicates that the pace of rise in total output must be greater than the rate of population growth, resulting in an improvement in citizens’ living standards. According to Olapade and Olapade (2010), A rise in economic activity is referred to as “growth.” Economic growth is defined as a rise in the value of a country’s goods and services over a period of time. (Ewa et al., 2020). Gross Domestic Product is used to measure this increase in economic growth. As a result, it is likely that a country’s economic expansion will not result in economic progress in the short, medium, or long term. (Hadjimichael et al., 2014) Economic growth refers to the monetary values of commodities produced in a country over a period of time by its population, regardless of their nationality. GDP can be calculated using the current basic price (Nominal GDP), the constant basic price (Real GDP), or the current market price. Because it accounts for changes in the price level of goods and services produced inside the country at a given time, real GDP has been a good measure of economic growth. 2.1.5 Gross domestic product (GDP) According to Onuoha, et al..,(2015), Gross Domestic Product is the most detailed and widely acceptable measure of total output or performance of an economy. According to the Central Bank of Nigeria (2010), GDP is defined as the monetary value of goods and services produced within a period of time in an economy regardless of the ethnic nationality of those who produced the goods and services. Nnamocha (2002) defines Gross Domestic Product as the total money value of all goods and services produced in the domestic economy by everybody in that economy no matter where they come from provided they reside within the economy. Nnamocha (2002) further posits that GDP comprises both the citizens and non- citizens of an economy and it must be equal only to the value of the end products. Onuoha et al., (2015) state the discrepancy between Gross Domestic Product and Gross National Product by saying that while Gross Domestic Product concentrates on the county in which income is generated with emphasis on where the output is produced, Gross National Product is concerned with those who produced the income. Ruffin (1998) posits that Gross Domestic Product broadly measures the total output of the economy which includes only the final goods and services to avoid double counting of products. GDP is calculated by measuring the total income value. Nominal GDP measures the monetary value of final goods and services in current market prices and rises either because of increasing output or rise in the price of products. Real GDP measures the quantity of real goods and services by removing the effect of inflation in prices. However, some categories of goods and services such as illegal goods, non-market goods, and leisure value are excluded from Gross Domestic Product since GDP merely measures economic welfare to the people and not a measure of economic “bads” (Ruffin, 1998). 2.2 Theoretical review 2.2.1 Laffercurvetheory of taxation The Laffer curve theory of taxation is a theory formalized by supply-side economist Arthur Laffer in 1974 to show the relationship between tax rates and the amount of tax revenue collected by governments. The Laffer curve describes the relationship between tax rates and total tax revenue, with an optimal tax rate that maximizes total government tax revenue. The Laffer curve states that if tax rates are increased above a certain level, then tax revenues can actually fall because higher tax rates discourage people from working. If taxes are too high along the Laffer curve, then they will discourage the taxed activities, such as work and investment, enough to actually reduce total tax revenue. In this case, cutting tax rates will both stimulate economic incentives and increase tax revenue. The Laffer curve is based on the economic idea that people will adjust their behavior in the face of the incentives created by income tax rates. Higherincome tax rates decrease the incentive to work and invest compared to lower rates. If this effect is large enough, it means that at some tax rate, and further increase in the rate will actually lead to a decrease in total tax revenue. For every type of tax, there is a threshold rate above which the incentive to produce more diminishes, thereby reducing the amount of revenue the government receives. The first presentation of the Laffer curve was performed on a paper napkin back in 1974 when its author was speaking with senior staff members of President Gerald Ford’s administration about a proposed tax rate increase in the midst of a period of economic malaise that had engulfed the country. At the time, most believed that an increase in tax rates would increase tax revenue. Laffer countered that the more money was taken from a business out of each additional dollar of income in the form of taxes, the less money it will be willing to invest. A business is more likely to find ways to protect its capital from taxation or to relocate all or a part of its operations overseas. Investors are less likely to risk their capital if a larger percentage of their profits are taken. When workers see an increasing portion of their paychecks taken due to increased efforts on their part, they will lose the incentive to work harder. Put together these could all mean less total revenue coming in if tax rates were raised. Laffer further argued that the economic effects of reducing incentives to work and invest by raising tax rates would be damaging in the best of times and even worse in the midst of a stagnant economy. This theory, supplyside economics, later became a cornerstone of President Ronald Reagan’s economic policy, which resulted in one of the biggest tax cuts in history. During his time in office, annual federal government current tax receipts from $344billion in 1980 to $550 billion in 1988, and the economy boomed. The Laffer Curve was used as a basis for tax cuts in the 1980's with apparent success but criticized on practical grounds on the basis of its simplistic assumptions, and on economic grounds that increasing government revenue might not always be optimal. 2.2.2 Revenue productivity theory This study is hinged on Revenue Productivity Theory. Anyanwu&Oaikhenan (1995), stated that economic growth refers to the increase, over time, of a country‟s or an economic capacity to produce those goods and services needed to improve the well-being of the citizens in increasing numbers and diversity. This is the reason why government of many nations, Nigeria inclusive has placed more emphasis on ways of boosting their revenue sources given the high expectations from their citizens. Ndekwu (1991), noted that more than ever before, there is now a great demand for the optimization of revenue from various tax sources in Nigeria. Scholars like David Ricardo and J. S. Mills emphasized this distinction by putting revenue first, in their division of public finance into three, namely; „revenue, expenditure and public debt‟. Public Finance experts based their arguments principally on Revenue Productivity as important criteria for judging a good tax system (Okezie, 2003). This theory lays emphasis on having a large tax base to cover minimum cost through efficient tax administration. The taxes introduced should be appropriate and sufficient to finance the expenditure needs of the government over time. Well-designed tax systems would encourage competitive growth across various sectors of the economy with high prospect of tax revenue. An effective tax system and efficient use of public debt would encourage an efficient economy and provide an environment conducive for business, thereby reducing costs. When taxes and other revenue sources fund the essential „public goods‟ like public security and the „rule of law‟ on which oil and non-oil depends, it also promotes revenue productivity. 2.2.3 Ability to paytheory The theory was propounded by Adams Smith 1776 and was further popularized by Cicil Pigou 1877. This theory was adjudged one of the most remarkable, renown and generally accepted theory of taxation that allow citizens to pay tax to the government according to their ability (Otu&Theophilus, 2012). Jones and Rhoades (2011) posited that since the introduction of this theory, it has the dominant effect and explain the basis upon which good tax system should operate (Lawrence, 2015). The theory contends that tax system should be on progressive basis to the taxpayers so that those who earn more pay more tax and those who earn lower income pay less. The theory is adjudged reasonable and fair theory of taxation because it takes into account the differences in income for different tax payers. 2.3 Empirical review Etim et al.., (2020) investigated the long run relationship existing between petroleum profit and companies’ income taxes and economic growth in Nigeria in the period of 1980 to 2018. Specifically, the study examined the impact of petroleum profit and companies’ income taxes and economic growth in Nigeria. The number of observations was 39 years period. The analytical tools were Augmented Dickey-Fuller (ADF) unit root-test, Engle Granger Procedure Co- integration test, Parsimonious Error Correction Mechanism (ECM), Durbin- Watson statistic and over parameterized model. The results of the analysis reveal a positively significant association of studied variables with (0.9844) and (0.9471) co-efficients for petroleum profit tax and companies income tax respectively in relation independent variables integrate with the dependent variable at first order. This indicates long run relationship. Also, the parsimonious results shows a positive coefficients of (3.6344) and (2.7644) and (2.7629) for t-values of CIT and PPT on economic growth. In view of the results, government’s tactful handling of issues that are tax related was recommends so as to stimulate additional investments, entrepreneurial activities and innovations. Uket et al.., (2020) investigated the impact of taxation revenue on the development of Nigerian economy (1994-2018). The study explored the impact of three tax income streams – Income tax from companies’ profits, income tax from petroleum companies profits and Value Added Tax on economic development represented by Gross Domestic Product (at current basic prices) growth. The study employed exploratory and ex-post facto research designs. The study applied Ordinary Least Square statistical tool with the help of SPSS 20.0. The study revealed a positive relationship with a coefficient of determination of 99.2% of the variation in economic development attributable to the tax income streams studied. Also although the study revealed the existence of significant effect of taxes from companies’ profits and Value Added Tax on Gross Domestic Product Growth, there is little or no significant impact of taxes on profits of Petroleum companies on Gross Domestic Product growth in Nigeria due to restriction by Organization of Petroleum Exporting Countries production ceiling on Nigeria’s production/sales and the global price shocks of crude oil over the decade. Also the study revealed tax payers apathy to tax payment and presence of tax leakages due to corruption and administrative inefficiencies by the tax authorities. It is recommended that Nigerian government should restructure its petroleum sector by intensifying efforts at processing the crude oil and only selling processed oil to the international market. Awa and Ibeanu (2020) ascertained the influence of tax revenue on economic development of Nigeria (1997 to 2018). The specific objectives are; to determine the influence of petroleum profit tax, company income tax and value added tax on economic development proxy by human development index (HDI). The study adopted ex post facto research design. Annual time series data, from CBN and FIRS from 1997 to 2018 were used. The study used regression analysis. The result shows that petroleum profit tax and company income tax have significant effect on economic development while value added tax does not significantly influence economic development. The implication of the finding is that the higher the amount of tax revenue generated, the higher the level of economic development experienced by the economy. The study recommends that tax policy makers such as federal inland revenue services and other tax regulatory bodies should strengthen their regulation on tax compliance mostly on tax that are directly based to curb tax evasion and tax avoidance by tax payers, adopt strategies to improve system of tax administration, by training and re- training of tax administrators through seminars and conferences to be abreast of modern trend in tax administration in order to generate more income for development. Maganya (2020) investigated the effect of taxation on economic growth in Tanzania using the recently developed technique of autoregressive distributed lag model (ARDL) bounds testing procedure for the period from 1996 to 2019. The study analyzed the relationship between domestic goods and services and Gross Domestic Product (GDP); examined the relationship between income taxes and Gross Domestic Product (GDP). The study adopted ex-post facto research design which gives room to measure the effect or relationship between dependent variable and explanatory variables using time-series secondary data. The methods of data analysis were unit root test, autoregressive distributed lag model (ARDL) bounds testing procedure and pair-wise granger causality analysis. The finding reveals that domestic goods and services (TGS) taxes are positively related to GDP growth and are statistically significant at 1% level. Income taxes, on the other hand, were found to be negatively related to GDP growth and to be statistically significant at 5% level. The pair-wise Granger causality results indicated that there is bidirectional Granger causality between TGS and GDP growth at 1 % significance level. The government should aim at growing, nurturing and sustaining tax base to positively drive economic growth even further. Olugbemi et al.., (2020) examined tax revenue and economic growth using an econometric approach covering a period of 1991 to 2018. The specific objectives were: to examine the effect of taxation, domestic investment, government expenditure on economic growth in Nigeria. Exploratory design was employed to identify the factors that contribute to tax revenue on economic growth in Nigeria. Secondary sources of data was employed which includes Central Bank Statistical Bulletin .In analyzing the data gathered for this work, multiple regression model was employed to establish the relationship between dependent and independent variables. The result revealed the positive relationship that existed between tax revenue and economic growth using GDP as an index economy. The study recommends that funds generated from the public should be properly utilized so that the growth of Nigeria economy will be positively affected. Also investment opportunities should be available in order to fostering economic growth. Therefore, government should increase its spending and also spend more s this will promote investment. Omondi (2019) analyzed the effect of custom and excise duties on economic growth in Kenya for the period 1973 to 2010, The specifically, the study examined the effect of value added tax , personal income tax, excise duty and custom duty on real Gross Domestic Product (RGDP) as proxy for economic growth. The study adopted ex- post facto research design. The data were analysed using Multiple Regression Analyses in line with the research objectives of the study. The empirical results indicate that custom and excise duties are positively correlated with economic growth in Kenya. The study recommends that government should rely more on custom and excise duties than income tax due to its growth prospect and its less distortionary nature, and also utilize the positive relationship between indirect tax and economic growth to realize efficient government investment expenditure that spurs economic growth. Salami et al.., (2018), studied impact of non-oil revenue on the economic growth of Nigeria. The study covered the period 1981-2016 and gross domestic product was adopted as the proxy for economic growth and it was also used as the dependent variable. On the other hand, the study adopted non-oil revenue as the independent variable. The study made use of the Ordinary Least Squares (OLS) regression analysis to analyze the data collected from the Central Bank of Nigeria (CBN) Statistical Bulletin. Findings from the study revealed that non-oil revenue exerted a positive and significant impact on economic growth in Nigeria. The study therefore concluded that non-oil revenue exerted a significant impact on the economic growth of Nigeria. Likita et al..,(2018), carried out an investigation on impact of non-oil revenue on economic growth in Nigeria. The study covered the period 1981 to 2016 and agricultural revenue, manufacturing revenue, solid minerals contributions, services revenue contribution, company income tax, and custom and excise duties tax were adopted as proxies for non-oil revenue and they were used as the independent variables. On the other hand, the study made use of gross domestic product (GDP) as proxy for economic growth and it served as the dependent variable. Unit root test was carried out to determine the stationarity of the variables while the cointegration test was carried out to ascertain the existence of long run equilibrium relationship among the variables. Thereafter, the Ordinary Least Squares (OLS) and error correction mechanism (ECM) techniques were used to analyze the data collected. Findings from the study showed that agricultural revenue, manufacturing revenue and services revenue exerted positive and significant impact on economic growth. On the other hand, the study showed that company income tax revenue exerted a negative and significant impact on economic growth in Nigeria. The study further revealed that solid minerals revenue exerted a negative and insignificant relationship with economic growth while custom and excise duties tax exerted a positive but insignificant impact on economic growth in Nigeria using the Ordinary Least Squares (OLS) estimation method. Using the error correction mechanism (ECM) model, the study revealed that agricultural revenue and services revenue exerted a positive and significant impact on economic growth of Nigeria whereas manufacturing revenue, solid minerals revenue and customs and excise duties tax exerted a positive but insignificant impact on economic growth of Nigeria. The study further revealed that company income tax revenue exerted a negative and significant impact on economic growth of Nigeria. Kromiti et al.., (2017), carried out an investigation into the contribution of non-oil exports to economic growth in Nigeria. The study covered the period 1986 to 2015 and gross domestic product was used as a proxy for economic growth as well as the dependent variable. On the other hand, the study made use of non-oil export and exchange rate as the independent variables. Unit root test was carried out to determine the stationarity of the variables and the Autoregressive Distributed Lag (ARDL) methodology was used to determine impact of the independent variables on the dependent variable. Findings of the study revealed that non-oil revenue exerted a positive and significant impact on economic growth of Nigeria while exchange rate exerted a negative and weak significant impact on economic growth of Nigeria. The study concluded that non-oil exports made significant contribution to the Nigerian economic growth. Kawai (2017), studied impact of non-oil exports on Nigerian economic growth. The study covered the 1980 to 2016 and real gross domestic product was adopted as proxy for economic growth and it was used as the dependent variable. On the other hand, non-oil export and exchange rate were used as the independent variables. Unit root test was carried out to determine the stationarity of the variables used in the study and Engel-Granger cointegration test was carried out to ascertain the existence of long run equilibrium relationship among the variables. Findings of the study showed that non-oil export exerted a positive and significant impact on economic growth ofNigeria whereas exchange rate exerted a negative and significant impact on economic growth of Nigeria. The study argued that non- oil exports exerted a significant impact on economic growth of Nigeria Okun and Micah (2018) examined the effects of tax revenue on Nigeria economic growth. Time series data were sourced from Central Bank of Nigeria statistical bulletin and Federal Inland Revenue service from 1980 to 2016. Real Gross Domestic Product was modeled as the function of percentage of companies’ income tax, personal income tax and custom and excise duties tax. Granger causality test and Johansen co-integration test in the vector error correction model (VECM) setting were employed. Durbin Watson, β Coefficient, R-Square (R2) and FStatistics were used to determine the relationship between the dependent and independent variables as formulated in the regression models. The result proved that petroleum profit tax, companies’ income tax and personal income tax revenue have negative relationship with Nigeria economic growth while custom and excise duties tax have positive effect on Nigeria economic growth. The regression results showed that tax revenue have significant relationship with Nigeria economic growth. Khadijat and Taophic (2018) evaluated the effect of Petroleum Profit Tax and Company Income Tax on Nigerian economy growth. They applied the Fully Modified Least Square (FMOLS) Regression Technique to estimate the model over a 34 years period (1981-2014) using the Augmented Dickey Fuller Unit Root Test and Single Equation Co-integration Test. Findings revealed that Petroleum Profit Tax (PPT) and Company Income Tax (CIT) both have positive and significant impact on gross domestic product (GDP) in Nigeria. The study resolved that PPT and CIT serves as the main source of revenue to the Nigeria economy, and contribute to the growth of Nigeria economy. Nimenibo et al.., (2018) empirically examined tax revenue and economic growth in Nigeria from 1980 to 2015, employing Gross Domestic Product (GDP) as the dependent variable and Petroleum Profit Tax (PPT), Company Income Tax (CIT), and Customs and Excise Duties (CED) as the independent variables. The study was conducted using the Multiple Regression Analysis employing the Ordinary Least Square (OLS) method of econometrics as the analytical technique. The regression result showed that there is no significant relationship between Petroleum Profit Tax, Company Income Tax, Custom and Excise Duties and economic growth in Nigeria. Manukaji (2018) investigated the effect of tax structure on economic growth in Nigeria. The study made use of time series data from 1994 to 2016. Tax was disaggregated into value added tax, Company Income Tax, Petroleum Profit Tax, and Personal Income Tax. These tax components were regressed against Gross Domestic Product which is a proxy for economic growth. The data generated were analyzed using descriptive statistics, stationarity test, cointegration test and ordinary least square. The study found that all the tax components studied (Value Added Tax Revenue, Personal Income Tax Revenue, Petroleum Profit Tax Revenue and Company Income Tax Revenue) has significant influence on economic growth in Nigeria. Fave and Dabari (2017) examined tax revenue collection by the Federal government in Nigeria. The quantitative research design was adopted using the secondary data obtained from FIRS for the total tax revenue collected from the oil and non-oil taxes for the period of 2011-2015. The Federal Inland Revenue Services constitutes the population of the study. The sample size of the study was drawn from the Planning, Reporting and Statistics Departments of the Federal Inland Revenue Services. The study findings revealed that Capital Gains Tax, Stamp Duty, Education Tax and Petroleum Profit Tax are positive and significant while Company Income Tax and Value Added Tax are not significant. However, of all the remaining variables, Company Income Tax has more total collected revenue. Okwara and Amori (2017) examined the impact of tax revenue on the economic growth in Nigeria. They considered a 22year period covering 1994-2015. Data sourced from secondary documents such as journals, textbooks and Central Bank of Nigeria (CBN) statistical bulletin were used for the study analysis. Variables considered were Gross Domestic Product (GDP) proxy for economic growth, Value Added Tax (VAT), and nonoil income (tax). The Ordinary Least Square (OLS) regression with the aids of Statistical Package for Social Sciences (SPSS) was used to test the significant impact of value added tax and non-oil income on Gross Domestic Product (GDP) to avoid spurious results. The results revealed that non-oil income has significant impact on gross domestic product while value added tax has negative relationship and statistically insignificant for the period under review. The study concludes that tax revenue have significant impact on Nigerian economy growth. Popoola, et al.., (2017) investigated tax revenue and Nigerian economic growth for period of three decades, using time series data from 1986 to 2015. Data were collected from the Central Bank of Nigeria (CBN) Statistical Bulletin and National Bureau of Statistics (NBS).The study utilised both descriptive and Paired Sample T-test with the aid of Statistical Package for Social Science (SPSS) Version 23. The findings showed that, oil and non-oil tax revenue were positive and strongly correlated with Real Gross Domestic Product (RGDP). Ojong, et al.., (2016) studied the impact of tax revenue on the Nigerian economy. The desk survey method was used to extract data sourced from the Central Bank Statistical Bulletin. The Ordinary Least Square of multiple regression models was employed to establish the connection between dependent and independent variables. Findings revealed that there is a significant relationship between Petroleum Profit Tax, nonoil revenue, and Nigerian economic growth. Findings also revealed that there is insignificant relationship between Companies Income Tax and Nigerian economy growth. Arowoshegbe, et al.., (2016) examined tax revenue and economic growth of Nigeria. The specific objective of the study was to explore the influence of income tax revenue on the Nigerian economic growth proxied by Gross Domestic Product (GDP). Data for the period 1995 to 2015 were respectively collected from the Statistical Bulletins of Federal Inland Revenue Service and the Central Bank of Nigeria. The study adopted the Econometric Model of Multiple Linear Regressions and Ordinary Least Square (OLS) technique to explore the correlation between GDP (the dependent variable) and a set of government income tax revenue heads for 11 years period. Findings from the study showed that tax revenues that determine government economic growth are Petroleum Profit Tax and Company Income Tax. This indicates that taxes that have positive effect on economic growth are direct taxes, thus direct taxes wield more significant effect on Nigerian economic growth than indirect taxes. David, et al., (2016) analysed the role of mining sector to Nigeria economic development. It made use of time series data with the help of Error Correction model in ascertaining the relationship between the mining sector’s to the economic development. The finding discloses that the value of solid mineral has positive relationship on economic development in the country. It therefore recommended that Nigerian needs urgently develop her enormous mining potentials in such a manner that could lead to diversifying the economic and greatly achieve rapid economic growth. Olajide, Akinlabi, and Tijani, (n.d) examined the association of Agricultural resource on economic growth in Nigeria. Economic growth was proxy with gross domestic product (GDP). It employed the ordinary least square regression method (OLS). The results disclosed a positive relationship between gross domestic product (GDP) and agricultural output in Nigeria. It concludes that the government should make prosperous effort to improving the agricultural sector by granting the farmers incentives, access to good roads and providing adequate funding. Okezie, and Azubike (2016) researched on the impact of Non-oil revenue to government revenue and economic growth in Nigeria. It considered secondary data obtained from the statistical bulletin of the Central bank of Nigeria which was analyzed using the Ordinary Least Squares Regression. Result of the analysis showed a positive and significant contribution of non-oil revenue to economic growth and positive but slightly insignificant contribution to government revenue. It proposed diversification for the government; any effort to sabotage this course must be nipped in the bud as the development of the non-oil sector remains a veritable channel for tapping into Nigeria’s hidden wealth. Ogunbiyi, and Abina (2019) researched on the nexus between oil and nonoil revenue on economic growth. The economic development was proxy with human development index and stands for the dependent variable while oil and non-oil revenue were used as independent variable. It obtained data from the central bank of Nigeria bulletin and index mudi for the period 1981 to 2018. It employed the Descriptive Statistics, Augmented Dickey-Fuller Unit Root test, Johansen Co-integration and Error Correction Estimates. The estimated result discloses that oil revenue has a negative but significant relationship with human development index. It is believed that the negative contribution came as a result of the resource curse ideology. On the other hand, non-oil revenue has a positive but insignificant association with dependent variable. Aptly, it considered the need for diversification of exportable product. Mobosi et al. (2017) studied with the aim to finding why government diversification policy, Industrial Sector has impacted on the output of growth of Nigeria. It made use of time series data from the period 1970 – 2016. It adopted the Error Correction Classical Linear Regression approach and trend analyses. Hence, on the average, the results revealed that industrial share to GDP and output growth per capita in Nigeria exhibits positive reaction to the observable changes in the index of government diversification (DIV), human capital per person (HK), and number of persons employed (EMP) and domestic credit allocated to private sector by banks (CRA). Edeme, et al., (2018) studied the role of solid mineral development in attaining sustainable growth in Nigeria. It adopted time-series with emphasis on GDP per capita, foreign trade balance, solid minerals output, domestic interest rate, gross domestic savings and inflation from 1960-2015. The Linear Growth Regression model showed that solid minerals positively and significantly affect sustainable growth. It further revealed that solid mineral is greatly significant but negatively associated with foreign exchange due largely to illegal movement of mineral commodities across the shores of the country. It recommended that much attention should be focused on the development of the solid minerals to help the economy from the vagaries of the present economic woes. Doki, et al., (2019), carried out a study on how export diversification affects economic growth. It made use of the Bounds Co-integration test and the Error Correction Model (ECM) under the Autoregressive Distributed Lags (ARDL). The result showed that export diversification has positive but immaterial effect on economic growth in Nigeria in the long and short run. It thus, recommended that the government should intensify the effort to diversify the economy and properly channels towards the manufacturing and service industry export with the optimism that bulk of revenues comes from these sectors. Anthony, Edeh, and Ukpere, (2015) investigated the impact of non-oil export to economic growth in Nigeria for the period 1981- 2012. The study adopted the export-led-growth hypothesis as the framework of the study. Also, the Granger Causality technique was used for analysis. Findings revealed that in both the short and long runs, non-oil export determined economic growth. Nakah, et al.., (2018) carried out a study on “the impact of non-oil revenue on economic Growth in Nigeria. The study employed time series data spanning the period 1981 – 2016. Statistical techniques used for analysis is multiple regression while E. view is the statistical package used. The study showed clearly that Agricultural revenue improved productivity, and standards of living of people in the country through the revenue gained from food production, animal farming, and incentive to farmers. Akwe (2014) studied the impact of non-oil revenue on economic growth in Nigeria from 1983 – 2012. It was found that there exist a positive impact of non-oil tax revenue and economic growth. Aremu and Olakunle (2014) conducted an assessment of non-oil revenue on economic growth and development in Nigeria using primary data from 1972 to 2012. The study used multiple regressions for its analysis and the result showed a positive impact of non-oil revenue on economic growth and development. Okafor (2012) carried out a study on the impact of Income Tax Revenue on the Economic development of Nigeria. Secondary data were collected for a period: 1981-2007. The ordinary least square (OLS) regression analysis was also used. The results suggest a very positive and significant relationship between the variables. Adereti, Sanni and Adesina (2011), considered the relationship between Value Added Tax and Economic Growth of Nigeria. Secondary data were collected from Central Bank of Nigeria (CBN) Statistical Bulletin for period 1994-2008, and analyzed using simple regression and descriptive statistics. The results suggest a positive and significant correlation between the GDP and VAT revenue. The price of oil and how it affects economic growth was investigated by Gummi et al. (2017). The study made use of data gotten from World Bank, OPEC and Central Bank of Nigeria bulletin (CBN). The direction of causality and the stationarity level was ascertained between the data and it was discovered that one-way direction is identified and it flowed from oil price to economic growth, meaning past values of oil price can help to forecast the direction of changes in economic growth. The same direction of causality was identified between human capital and economic growth in Nigeria. Finally, past values of oil price can predict total export but total export cannot be used to predict oil price in Nigeria. The study suggested that the human capital need to be developed and this can be done by increasing budgetary allocation in the educational sector, in order for the proceeds gotten from oil export to be substantial, there is need for policies on how international oil price will become stable this will increase the value of revenue gotten from total export. Time series data on oil proceed from year 1960-2010 was used by Nwoba and Abah (2017) to examine the influence of crude oil proceeds in Nigeria economy, regression analysis was employed as the statistical technique in the study and it was discovered that a positive long run relationship was identified between proceeds from oil and gross domestic product in Nigeria. Likita et al. (2018) evaluated the relationship between non-oil revenue and economic growth between the period 1981-2016. The study made use of regression analysis and error correction model. The research therefore recommends economic policies on how the non-oil sector can be explored and diversified in the country. Olayungbo and Olayemi (2018) investigates the long run nexus between government spending, non-oil revenue and economic growth in Nigeria between 1981-2015. It was discovered from the long run analysis that substantial relationship was identified between non-oil revenue and economic growth meanwhile a contrary relationship was identified between fiscal spending and economic growth, the causal test showed that fiscal spending causes a change in economic growth and non-oil revenue, the finding supports the Keynesian hypothesis, the investigation further recommended that diversification is needed into other sectors instead of depending solely on oil revenue. 2.4 Gap in Literature The impact of Nigeria's economy's non-oil income on economic development has been attempted to understand in these writings. Although some people disagreed, most believed that there is a favourable influence. The majority of research were primarily concerned with how tax revenue affected the Nigerian economy. On how non-oil revenues affect Nigerian economy, there is no comprehensive study. In order to close the gap, this study will look at how Nigeria's economic growth has changed due to factors other than oil. CHAPTER THREE METHODOLOGY 3.1 Research design The study adopted the ex-post facto research design to put a connection between the dependent variable and independent variable based on existing data. Econometric model was used in analyzing data obtained in the study and the methodology was empirical. 3.2 Selection of data The study made use of secondary data, mostly time series. The data is made up agricultural sector revenue, service sector revenue and value added tax in Nigeria 3.2.1 Collection of data The data for this study was obtained from the Central Bank of Nigeria (CBN) Statistical Bulletins (2022) and National Bureau of Statistics. Using data over the period 1981 – 2022 and in tune with the model adopted in the study, Gross domestic product represents economic development in Nigeria was regressed on a variety of independent variables – agricultural revenue, service revenue, value- added tax revenue 3.3 Operational measure of variables Economic growth is the dependent variable represented by GDP while independent variable are two components of non oil revenue represented by Agricultural revenue and service revenue. 3.4 Data analysis techniques Regression analysis was used to determine the relationship between the dependent and independent variables when examining the data collected. The relationship between non-oil revenue, represented by various receipts, and gross domestic product in Nigeria was established by the study using an econometric technique. The numerical estimates of the coefficients in various model equations were obtained using the ordinary least square (OLS) approaches. It was decided to adopt the ordinary least square (OLS) method because it has some excellent qualities. 3.5 Model specification: In the hypothesis, gross domestic product in Nigeria is expressed as a function of agricultural revenue, service revenue and value added tax revenue. That is: GDP=f(AGRR,SERR,)………………………………………….. i Where; GDP= Gross domestic product AGRR = Agricultural revenue SERR= Service revenue The relationship expressed in equation form is GDP = α + α1AGRRt +α2SERRt+ ………… ii. Where; α1, α2, > 0 CHAPTER FOUR DATA PRESENTATION AND ANALYSIS 4.1 Data presentation Data for the variables of the dependent and independent variables are presented in tables below. Empirical results from data estimation are also presented in this sub section. Table 4.1: Data for the research variables YEAR GDP (Nb) AGRR (Nb) SERR (Nb) 1981 19,748.53 17.05 66.20 1982 18,404.96 20.13 75.22 1983 16,394.39 23.80 79.22 1984 16,211.49 30.37 83.51 1985 17,170.68 34.24 88.88 1986 17,180.55 35.70 95.42 1987 17,730.34 50.29 111.51 1988 19,030.69 73.76 135.80 1989 19,395.96 88.26 175.68 1990 21,680.20 106.63 207.98 1991 21,757.90 123.24 242.90 1992 22,765.55 184.12 371.34 1993 22,302.24 295.32 532.41 1994 21,897.47 445.27 752.05 1995 21,881.56 790.14 1,146.45 1996 22,799.69 1,070.51 1,444.76 1997 23,469.34 1,211.46 1,605.49 1998 24,075.15 1,341.04 2,036.47 1999 24,215.79 1,426.97 2,389.68 2000 25,430.42 1,508.41 3,093.38 2001 26,935.32 2,015.42 3,806.19 2002 31,064.27 4,251.52 4,482.11 2003 33,346.21 4,585.93 5,306.95 2004 36,431.37 4,935.26 7,857.69 2005 38,777.01 6,032.33 10,331.83 2006 41,126.68 7,513.30 14,728.56 2007 43,837.39 8,551.98 17,324.92 2008 46,802.76 10,100.33 19,567.72 2009 50,564.26 11,625.44 22,157.26 2010 55,469.35 13,048.89 27,736.94 2011 58,180.35 14,037.83 31,089.46 2012 60,670.05 15,816.00 36,310.22 2013 63,942.85 16,816.55 42,422.17 2014 67,977.46 18,018.61 48,812.00 2015 69,780.69 19,636.97 55,319.41 2016 68,652.43 21,523.51 61,324.81 2017 69,205.69 23,952.55 64,119.18 2018 70,536.35 27,371.30 67,147.20 2019 72,094.09 31,904.14 72,426.66 2020 70,800.54 37,241.60 71,551.68 2021 73,382.77 41,126.06 77,100.63 2022 74,753.42 47,944.06 89,112.99 Source : CBN statistical Bulletin Table 4.2 presents the regression results on the relationship between non-oil revenue components and Nigeria’s Gross domestic product. Table 4.2: Regression result on non-oil revenue and GDP relationship _cons 24009.11 1228.099 19.55 0.000 21525.04 26493.17 SERR 1.021313 .1786538 5.72 0.000 .6599511 1.382674 AGRR -.6391857 .3880977 -1.65 0.108 -1.424187 .1458159 GDP Coefficient Std. err. t P>|t| [95% conf. interval] Total 1.8208e+10 41 444105926 Root MSE = 6325.7 Adj R-squared = 0.9099 Residual 1.5606e+09 39 40014412.3 R-squared = 0.9143 Model 1.6648e+10 2 8.3239e+09 Prob > F = 0.0000 F(2, 39) = 208.02 Source SS df MS Number of obs = 42 Source: STATA 17 Output, 2023 4.2 Data analysis The overall fitness of the model is shown by the adjusted R-squared value of the model as shown in table 4.2. From table 4.2, the adjusted R2 is 0.909 showing that the independent variables (Agric revenue and Services revenue) explain about 91% of the variations in the dependent variable (GDP). Theadjusted R2 further show that the regression model has a good fit. The overall significance of the model is shown by the probability of the F- statistic (p =0.000) indicating that the model significant at 1% level. 4.3 Test of hypotheses In this chapter, the hypotheses formulated, in their null forms, to guide the research were tested for acceptance or rejection. These hypotheses are tested using the t- statistic values of the regression results presented in tables 4.2. The following decision rule guides the hypotheses testing. Decision rule Accept Ho: if p-value of t-statistic is ≥ 0.05 alpha level Reject Ho: if p-value of t-statistic is ≤ 0.05 alpha level 4.3.1 Test of hypothesis one Ho1: Agriculture revenue contribution has no significant impact on gross domestic product in Nigeria. From table 4.2, the regression coefficient (-.639) for AGRR is negative and the p- value (p= 0.108 > 0.05) is non-significant. Hence, the null hypothesis (Ho1) is not rejected as the researcher concludes that Agric revenue does not significantly contribute to Nigeria’s Gross domestic product. The result suggests that Agricrevenue in Nigeria has no significant contribution towards the improvement of Nigeria’s GDP. 4.3.2 Test of hypothesis two Ho2: Services revenue contribution has no significant impact on gross domestic product in Nigeria. From table 4.2, the regression coefficient (1.021) for SERR is positive and the p- value (p= 0.000 < 0.05) is non-significant. Hence, the null hypothesis Ho2 is rejected and the researcher concludes that services revenue has significant impact on Gross domestic product in Nigeria. The result implies that Services revenue in Nigeria significantly contributes to the improvement of Nigeria’s GDP. 4.4 Discussion of findings The analysis reveals a negative but insignificant relationship between of Agric revenue and GDP in Nigeria. The result implies that revenue from Agriculture has a non-significant contribution to GDP growth in Nigeria. A possible reason for this negative insignificant result may be that Agro yield in Nigeria is poor and subsistent and earns little in terms of foreign exchange. Agriculture in Nigeria in recent years has suffered neglect owing to the emphasis on oil as the mainstay of the Nigeria economy since the oil boom in the 1970s. The situation is now worse off given the very challenging herdsmen-farmer crisis which has taken a very dangerous dimension lately where farmers are killed in their numbers across the country with little or nothing being done by the Federal Government of Nigeria to check this. As a result, farmers flee their farm lands for fear of losing their lives to unrepentant herders who have taken over their farmlands. This has led to worsening food crisis in the country as well as dwindling revenue from agriculture, hence, a meager contribution to GDP. The result aligns with findings by Salami, et al (2018) but however disagrees with results by. Uket, et al (2020) Findings further reveal that services revenue has significant impact on Gross domestic product in Nigeria. The result implies that Services revenue in Nigeria significantly contributes to improvement of Nigeria’s GDP. Revenue from the services sector of the economy contributes immensely to economic growth in Nigeria. This result accords with findings by (Olugbemi et al 2020) but disagrees with results Likit et al(2018). CHAPTER FIVE SUMMARY, CONCLUSION AND RECOMMENDATION 5.1 Summary of findings The main objective of this study has been to investigate whether non-oil revenue impact economic growth in Nigeria. Based on empirical analysis, the major findings of the study are summarized hereunder. i. The study found that revenue from agriculture has a non significant negative impact on gross domestic product in Nigeria. ii. Findings also reveal that Services revenue has a significant positive impact on gross domestic product in Nigeria. 5.2 Conclusion The broad objective of this study has been to assess whether non oil revenue exerts influence on economic growth in Nigeria. The study used data pertaining to revenue from agriculture as well as revenue from the services sector to represent non oil revenue. From the analysis of the data, the study concludes that revenue from Agriculture has a non significant impact on gross domestic product in Nigeria. The study further concludes that Services revenue has a significant impact on gross domestic product in Nigeria. 5.3 Recommendation Based on the findings of this study, the study recommends that the Federal government of Nigeria rather than pay lip service to the problem of Herder-Farmer crisis in Nigeria, should take decisive step towards ending the ugly trajectory in order to improve Agricultural yield for local consumption as well as for export for foreign exchange hence, improvement in the nation’s GDP. More so, Services revenue contribution to GDP can be improved upon by addressing key challenging macro-economic variables such exchange rate and inflation which gradually crippling the services sector in Nigeria. This will result in enhanced revenue accruing from the services sector hence improvement in GDP 5.4 Contribution to knowledge This research work enhances the understanding of relationship between non oil revenues and government expenditure in Nigeria, using agricultural sector, service sector and service sector yield as the non oil revenue variables. The study would contribute to this field of study and enable the government to evaluate the effect revenue has on government economic growth in Nigeria. 5.5Suggestions for further research Having evaluated the relationship between various revenue and economic growth in Nigeria, future researchers should consider more variables using other forms of tax to measure government economic growth in Nigeria. It is also suggested to use other sources of revenue available to the government other than the one used in this study like personal income tax and company income tax. 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