Crude Oil Resources, Tax Revenue and Sustainable Social Development in Nigeria
The issue of social development has attracted global attention especially in countries that have huge resources without commensurate reflection on social welfare. Some developed countries levy heavy taxes on their citizens' income but provide adequate social facilities to drive the economy. African countries especially the oil-producing ones, have long relied on crude oil revenue but recently realize the need to improve tax revenue collection. In view of the fact that crude oil revenue constitutes large proportion of government revenue, this study investigates the impact of crude oil resources and tax revenue on social development of Nigeria from 2003 – 2019. The study employs the multiple regression techniques of estimation. The findings reveal that crude oil revenue is insignificant in affecting social development in Nigeria. Equally, exchange and inflation rates are both having significant negative impact on social development of the country. Interestingly, tax revenue impacts positively and statistically on social development. The outcomes of this study are unique and show that crude oil resources may no longer drive social development programs in Nigeria. Rather, the government should improve tax revenue collection and administration. The study recommends efficient utilization of public revenue and involvement of citizens in all social development processes.
Keywords: Crude oil resources, tax revenue, social development
JEL Classifications: H20, H27, H51, H52, H53