Public Revenue and Fiscal Consolidation in Nigeria

Abstract

This study seeks to ascertain the relationship between public revenue and expenditure as well as to examine the proportion of revenue and budget deficit that is spent on capital projects in Nigeria. Both descriptive and regression methods were used to analyze time series data covering a period of thirty-one years. The regression model was well-fitted and all the explanatory variables were significant in explaining the dependent variable, government revenue. Findings reveal that a positive relationship exists between public revenue and expenditure and that Nigerian government has not been spending enough funds on capital projects.

The study therefore recommended that public spending should be more on capital projects. There should be government intervention in the provision of public goods and in the regulation of private investors’ operation. Monetary policies which would lead to increase in money supply and favourable exchange rate should be put in place.

Keywords: public revenue, public expenditure, budget deficit, capital projects, public goods, monetary policies