Oil Revenue

What Role Should Oil Revenue Play in Relation to Tax Revenue in the Development of Nigeria in the Next Ten Years Oil has been a major source of revenue, energy and foreign exchange for the Nigerian Economy for the past three decades. Oil– the mainstay of the Nigerian Economy– plays a crucial and vital role in the shaping of the economic and political destiny of the country. It has had both positive and negative impacts on the Nigerian economy. Some of these impacts include: the creation of employment for both skilled and unskilled Nigerians; contribution to government revenue; serves as the largest source of national income; serves as a major source of foreign exchange; provision of socio-economic infrastructural facilities such as roads, hospitals and schools; supply of energy to industries. Despite all of the positive contributions it has made in the past years, the oil sector has been plagued with various problems which shed light on the negative aspects of it and due to these negative aspects, the Nigerian economy faces some problems. These problems include: poor funding of investments; smuggling and diversion of petroleum products; public control and bureaucracy. Another source of revenue to the government is Tax revenue. Tax is a compulsory payment or levy imposed by the government on income and wealth of individuals and on goods and services. Tax revenue has, however, been one of the major and stable sources of revenue to the government. This is due to the fact that some goods and services are priced with tax added to them so consumers have no choice than to buy these goods and services which have these taxes to their price. The same goes for those who pay income tax. In conclusion, I therefore dim it fit to say that with all the disadvantages that follows the oil sector-which clearly outweighs the advantages- in the next ten years, oil revenue is not likely to play a part in the development of Nigeria compared to