An Efficient Alternative Source of Revenue for Nigerian Government: Lessons from Economic Diversification

Abstract

The paper examined the source of revenue in Nigeria, the various sources and classification of government revenue in Nigeria, the constituents of federation account revenue heads, consolidated revenue fund heads, revenue sharing formula in Nigeria. The paper also critically reveals the causes/problems for the dwindling nature of government revenue; it considers the effect of fall in oil prices and the effect of the global financial meltdown on the revenue of Nigeria, which is the major problem that this paper is to proffer solution to as a matter that needs adequate attention. The main thrust of this paper is to explore other alternative sources of revenue for development by drawing lessons from other economies, to ensure sound national economic development and to generate growth and employment in Nigeria. This paper adopted the literary/doctrine research methodology, to review relevant issues. The paper suggests the way forward, by emphasizing that it is worthwhile that Nigeria’s total dependence on oil would have a devastating effect in the future, if there is no political/economic will by the leadership of the country to diversify the economy from total dependence on oil to other non-oil generating sectors, the government should also as a matter of urgency ensure that efforts are made by concentrating on non-oil sector, like areas of agriculture, mining of solid minerals, taxation etc. These areas should be given the same desired attention as is given to oil.