International Journal of Accounting, Finance and Risk Management

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Revenue Leakages and Economic Growth in Nigeria: The Place of Forensic Accounting

Received: 30 December 2022    Accepted: 1 March 2023    Published: 15 March 2023
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Abstract

In this study, the effect of revenue leaks on Nigeria's economic growth from 2011 to 2021 was examined. This was done in accordance with the metrics of Oil Revenue Leakage, Non-oil Revenue Leakage, and Total Revenue Leakage, as well as their effects on Nigeria's economy as measured by Real Gross Domestic Product. The World Bank Statistical Bulletin, the American National Bureau of Statistics and the websites of the Central Bank of Nigeria and the Federal Inland Revenue Service were used to create data for the years 2011–2021. The dataset for regression was defined using descriptive statistics, and the stationarity of the data was tested using the unit root method. Correlation analysis and a multiple regression analysis were employed to see how closely the independent variables moved in tandem with the relevant dependent variable. Findings revealed that non-oil revenue leakage had a beneficial impact on economic growth while oil revenue leakage had a negative impact but was not statistically significant. Accordingly, the study's findings on the connection between Nigeria's GDP growth and revenue leaks were inconclusive. The report suggests that to promote a high rate of tax compliance and reduce the twin problems of tax evasion and avoidance to a tolerable level, the government should generate job opportunities for everyone through the smart use of tax resources.

DOI 10.11648/j.ijafrm.20230801.12
Published in International Journal of Accounting, Finance and Risk Management (Volume 8, Issue 1, March 2023)
Page(s) 12-20
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Tax Avoidance, Tax Evasion, Economic Growth, Forensic Accounting, Revenue Leakage

References
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  • APA Style

    Emuebie Emeke, Obasi Mba Okoko, Dada Samuel Olajide. (2023). Revenue Leakages and Economic Growth in Nigeria: The Place of Forensic Accounting. International Journal of Accounting, Finance and Risk Management, 8(1), 12-20. https://doi.org/10.11648/j.ijafrm.20230801.12

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    ACS Style

    Emuebie Emeke; Obasi Mba Okoko; Dada Samuel Olajide. Revenue Leakages and Economic Growth in Nigeria: The Place of Forensic Accounting. Int. J. Account. Finance Risk Manag. 2023, 8(1), 12-20. doi: 10.11648/j.ijafrm.20230801.12

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    AMA Style

    Emuebie Emeke, Obasi Mba Okoko, Dada Samuel Olajide. Revenue Leakages and Economic Growth in Nigeria: The Place of Forensic Accounting. Int J Account Finance Risk Manag. 2023;8(1):12-20. doi: 10.11648/j.ijafrm.20230801.12

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  • @article{10.11648/j.ijafrm.20230801.12,
      author = {Emuebie Emeke and Obasi Mba Okoko and Dada Samuel Olajide},
      title = {Revenue Leakages and Economic Growth in Nigeria: The Place of Forensic Accounting},
      journal = {International Journal of Accounting, Finance and Risk Management},
      volume = {8},
      number = {1},
      pages = {12-20},
      doi = {10.11648/j.ijafrm.20230801.12},
      url = {https://doi.org/10.11648/j.ijafrm.20230801.12},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20230801.12},
      abstract = {In this study, the effect of revenue leaks on Nigeria's economic growth from 2011 to 2021 was examined. This was done in accordance with the metrics of Oil Revenue Leakage, Non-oil Revenue Leakage, and Total Revenue Leakage, as well as their effects on Nigeria's economy as measured by Real Gross Domestic Product. The World Bank Statistical Bulletin, the American National Bureau of Statistics and the websites of the Central Bank of Nigeria and the Federal Inland Revenue Service were used to create data for the years 2011–2021. The dataset for regression was defined using descriptive statistics, and the stationarity of the data was tested using the unit root method. Correlation analysis and a multiple regression analysis were employed to see how closely the independent variables moved in tandem with the relevant dependent variable. Findings revealed that non-oil revenue leakage had a beneficial impact on economic growth while oil revenue leakage had a negative impact but was not statistically significant. Accordingly, the study's findings on the connection between Nigeria's GDP growth and revenue leaks were inconclusive. The report suggests that to promote a high rate of tax compliance and reduce the twin problems of tax evasion and avoidance to a tolerable level, the government should generate job opportunities for everyone through the smart use of tax resources.},
     year = {2023}
    }
    

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    T1  - Revenue Leakages and Economic Growth in Nigeria: The Place of Forensic Accounting
    AU  - Emuebie Emeke
    AU  - Obasi Mba Okoko
    AU  - Dada Samuel Olajide
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    DO  - 10.11648/j.ijafrm.20230801.12
    T2  - International Journal of Accounting, Finance and Risk Management
    JF  - International Journal of Accounting, Finance and Risk Management
    JO  - International Journal of Accounting, Finance and Risk Management
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    EP  - 20
    PB  - Science Publishing Group
    SN  - 2578-9376
    UR  - https://doi.org/10.11648/j.ijafrm.20230801.12
    AB  - In this study, the effect of revenue leaks on Nigeria's economic growth from 2011 to 2021 was examined. This was done in accordance with the metrics of Oil Revenue Leakage, Non-oil Revenue Leakage, and Total Revenue Leakage, as well as their effects on Nigeria's economy as measured by Real Gross Domestic Product. The World Bank Statistical Bulletin, the American National Bureau of Statistics and the websites of the Central Bank of Nigeria and the Federal Inland Revenue Service were used to create data for the years 2011–2021. The dataset for regression was defined using descriptive statistics, and the stationarity of the data was tested using the unit root method. Correlation analysis and a multiple regression analysis were employed to see how closely the independent variables moved in tandem with the relevant dependent variable. Findings revealed that non-oil revenue leakage had a beneficial impact on economic growth while oil revenue leakage had a negative impact but was not statistically significant. Accordingly, the study's findings on the connection between Nigeria's GDP growth and revenue leaks were inconclusive. The report suggests that to promote a high rate of tax compliance and reduce the twin problems of tax evasion and avoidance to a tolerable level, the government should generate job opportunities for everyone through the smart use of tax resources.
    VL  - 8
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Author Information
  • Department of Accounting, Babcock University, Ilishan-Remo, Nigeria

  • Department of Accounting, Babcock University, Ilishan-Remo, Nigeria

  • Department of Accounting, Babcock University, Ilishan-Remo, Nigeria

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