IHENYEN, Confidence Joel
Department of Accounting
Niger Delta University Wilberforce Island, Bayelsa state
EBIWARE, Esther
Department of Accounting
Niger Delta University Wilberforce Island, Bayelsa state
EGIYE, Emomoemi
Department of Accounting
Niger Delta University Wilberforce Island, Bayelsa state
ABSTRACT
The purpose of this study was to use modern time-series data and sophisticated econometric methods to
examine the connection between tax income and government spending in Nigeria, both in the short- and
long-term. According to the research, there is a long-term connection between tax collection and
government spending in Nigeria. Government expenditure, tax income, debt, and population all exhibited
positive correlations at the 5% level of statistical significance in the results of the Vector Error Correction
Model (VECM). The study recommends that the Nigerian government should prioritize increasing tax
revenue to finance government spending and reduce the reliance on debt to avoid increasing the debt
burden. Additionally, the study recommends that the Nigerian government should implement policies that
encourage economic growth and population control to avoid unsustainable government spending.
Keywords: Econometric methods, government spending, tax revenue,