Government Revenue and Economic Growth in SouthSouth, Nigeria: An Evaluation

This study examined the impact of government in financing projects towards economic growth in selected states in South-South Nigeria. Related literature was reviewed. Four objectives, four research and hypotheses were stated and tested. The findings show that GDP and Internally Generated Revenue (IGR) have a very strong positive correlation (r = 0.967), suggesting that GDP rises significantly in tandem with IGR. This implies that internally mobilized resources play a significant role in the region's economic performance, highlighting the significance of effective local revenue generation. There is a significant positive correlation (r = 0.937) between GDP and Value Added Tax (VAT), indicating a close relationship between VAT collections and economic activity. This emphasizes how important consumption based taxes are for boosting local GDP growth. The 13% Derivation Fund (DIV) and GDP have a moderately positive relationship (r = 0.464), indicating that oil-producing activities' revenues have a positive impact on economic output, albeit not as strongly as IGR and VAT. The study recommended among others that: Federal Inland Revenue Service (FIRS) and state governments should cooperate to modernize VAT administration, close loopholes, and raise tax compliance awareness. Optimizing VAT collection is essential because it plays a major role in growth. Create impartial oversight organizations to keep tabs on state-level expenditures of federal allotments and derivation funds.