Relational Analysis of the Effect of Federation Accounts and Federal Government Retained Revenue on the Nigerian Economic Growth (1981-2015)

Abstract

The study is a relational analysis of the effect of federation accounts and federal government retained revenue on the Nigerian economic growth.  The specific objective is to examine the extent to which federation account and federally internally generated revenue (FAFRR) affect the economic growth (GDP), educational system (EDU) and health standard (HLT)of the people.  The study made use of ex-post facto research design and also employed time series data spanning from 1981 to 2015 which were obtain from CBN statistical bulletin.  The statistical tools used for the analysis were multiple regression and t-test with the aid of SPSS version 20.  The result revealed that FAFRR as the independent variable has a strong positive relationship and impact on all the dependent variable (GDP, EDU & HLT).  The researchers were concerned about the visible result of the deterioration in the health care services, educational system and the economy generally.  The research therefore concludes that, those gaps could be blamed on corrupt government officials who misappropriate government funds and resources.  The study hereby recommends intensive anti-corruption moves by the relevant authorities that will actually bring these corrupt officials to book and that will serve as a deterrent to the existing and potential ones.

Keywords: Federation account, Retained revenue, Economic growth, Education, Health.