Tax Revenue Influences and Capital Expenditure in Nigeria

Olusegun Peter Ajagun, James Sunday Kehinde and Maumo Jerry Jinadu
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Olusegun Peter Ajagun: Lagos State University, Ojo
James Sunday Kehinde: Lagos State University, Ojo
Maumo Jerry Jinadu: Lagos State University, Ojo

International Journal of Research and Innovation in Applied Science, 2025, vol. 10, issue 2, 336-349

Abstract: The study examined the effects of Tax Revenue Influences on Capital Expenditure in Nigeria. The study adopted the ex-post facto research design as data collected were sourced from relevant publications of the Central Bank of Nigeria statistical bulletins, FIRS and National Bureau of Statistics. The independent variable for the study is Oil Tax Revenue and Non-oil Tax Revenue, while the dependent variable is Capital Expenditure. The data were analyzed using descriptive statistics and fully modified ordinary least square method in form of multiple regression technique. However, the results of the descriptive analysis showed significant variations of value of performance indices. The result of the regression analysis showed the positive effect of Direct Oil Tax Revenue (OTR) and Non-Oil Taxes (NTR) on Capital Expenditure (CE) in Nigeria. At 1% level of significance, independent variable has significant and positive impact on dependent variable. The significant of these discoveries is essential for policy makers in adopting a smart tax policy that priorities the development of the economy. However, the study recommended that government shoul cutdown its expenditure and channel its revenue towards growth of the economy and also should be encouraged to identify and address challenges in tax revenue utilizations.

Date: 2025
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