Year: 2026
Type: article
Abstract: The study examines the effect of tax revenue mobilisation on national security funding in Nigeria using annual time series data spanning 1990 to 2024. Anchored on the Benefit Theory of Taxation, Public Goods Theory, and Revenue-Effort Theory, the study employs the Autoregressive Distributed Lag (ARDL) bounds testing approach developed by Pesaran, Shin and Smith (2001) to estimate both long-run and short-run dynamics among the variables. The findings from the bounds test confirm the existence of a stable long-run cointegrating relationship among tax revenue mobilisation, GDP growth, inflation, corruption, public debt, and national security funding. The long-run estimates reveal that tax revenue mobilisation exerts a positive and significant effect on national security funding, while corruption and public debt exert significant negative effects. GDP growth also exerts a significant negative effect, contrary to a priori expectations, while inflation exerts a positive but modest influence. The error correction term confirms a valid adjustment mechanism toward long-run equilibrium. The study concludes that strengthening domestic revenue mobilisation, combating corruption, and prudent debt management are essential for ensuring sustainable national security financing in Nigeria.
Institution: University of Calabar
Language: English
Topic: Economic and Fiscal Studies
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W7211908433