Implication of Tax Revenue Budget Performance on Nigerian Federal Revenue

Tax revenue is one of the major macro-economic tools for wealth and employment creation. Effort to collect productive tax revenue is largely sequestrated on efficient budgetary focus of government agent otherwise T referred to as Tax Revenue Service. A conspicuous wide gap between budgeted and actual oil tax revenue as against weak performance in the non-oil tax revenue as well as difficulty experienced in the recent past by federal government of Nigeria to meet her financial obligations provide bases for this study. Secondary data were employed to examine tax revenue performance of the Service within 2005 and 2014. Online archival time series data were sourced from both Nigerian federal revenue Service and Bureau of Statistics' websites. Result of simple OLS regression analysis revealed that tax revenue budget positively and significantly explains actual tax revenue achieved. However, it is noted that actual tax revenue performance informs revenue realised by the government which could not significantly impact on capital expenditure. Thus, the study recommends among other that tax revenue Service should walk around non-oil tax revenue as it remains potential and yet to be fully explored source of tax revenue to the federal government while government should also provide adequate policy support to enhance the Service improved tax revenue performance. Economic policy restructure that accrue serious attention to funding productive capital projects is also suggested.