This study investigates the effect of oil price variations on non-oil revenue performance in Nigeria which, to our knowledge, has not received adequate empirical scrutiny. This issue is at the forefront of government policy plans which seek to improve non-oil revenue inflows. Utilizing dynamic time series modelling approach to analyze data from 2010M1 to 2020M12, the findings reveal that oil price dampens non-oil revenue mobilization efforts in the short-run but is positive in the long run. This indicates that the Dutch disease hypothesis holds in the short-run but not in the long run. Also, a depreciation of the exchange rate was found to improve non-oil revenue inflows. Robustness checks using disaggregated non-oil revenue: trade taxes (import duties and levies) and domestic taxes (value-added tax, corporate, and personal income tax) validate the findings. Therefore, policy measures aimed at building up domestic revenue are required to minimize oil revenue dependency.
Shuaibu, M., & El-Yaqub, A. (2022). A Closer Look at the Nexus between Oil Price and Non-Oil Revenue in Nigeria. Iranian Economic Review, (), -. doi: 10.22059/ier.2022.88412
MLA
Mohammed Shuaibu; Ahmad El-Yaqub. "A Closer Look at the Nexus between Oil Price and Non-Oil Revenue in Nigeria". Iranian Economic Review, , , 2022, -. doi: 10.22059/ier.2022.88412
HARVARD
Shuaibu, M., El-Yaqub, A. (2022). 'A Closer Look at the Nexus between Oil Price and Non-Oil Revenue in Nigeria', Iranian Economic Review, (), pp. -. doi: 10.22059/ier.2022.88412
VANCOUVER
Shuaibu, M., El-Yaqub, A. A Closer Look at the Nexus between Oil Price and Non-Oil Revenue in Nigeria. Iranian Economic Review, 2022; (): -. doi: 10.22059/ier.2022.88412