Illicit Financial Flow and Revenue Generation in Nigeria

Abstract

The cost of debt servicing in Nigeria is on the rise and takes an increasing portion of the public revenue generated. A report by the Global Financial Integrity shows how countries in Sub-Sahara Africa loses capital illegally of which Nigeria is not excluded. Hence, this study examines the influence of illicit financial flow on revenue generation in Nigeria. The ex-post facto research design was used and secondary data was collected from the 2021 report of the Global Financial Integrity and the National Bureau of Statistics in Nigeria. The data was covered over a time span which ranged from 2005 to 2018. The simple regression model was used to examine the influence of illicit financial flow on revenue generation in Nigeria. The result shows that illicit financial flow has an inverse influence on oil revenue in Nigeria and a positive influence on   non-oil revenue in Nigeria. it was concluded from the study that illicit financial flow has a significant influence on revenue generation in Nigeria. It is recommended that the Federal government set up measures to prevent illicit financial flow in Nigeria.