ABSTRACT

The Nigerian government is in need of alternative source of revenue as the main stream of the nation's economy (oil) has been going southwards in recent times. Taxation is one alternative source of revenue to any government but the Nigerian tax system fails to carry out this function effectively due to different factors including tax evasion and avoidance. The study therefore, is to examine if there is any relationship between tax revenue and capital budget implementation in Nigeria, given selected years. The design adopted in this study is the ex-post facto as data collected where from the year 2005-20 16. The study was done with secondary data obtained from the CBN statistical bulletins and the annual reports of the FIRS. Data collected were analyzed using Pearson's product correlation coefficient and p-value test of significance. The findings in this study indicates that several taxes collected by the Federal government is not employed in capital budget implementation in Nigeria. There has been wide disparity between the revenue generated through tax and budgeted capital expenditure which can be improved. The study recommends that government should strengthen the Nigerian tax system through reforms and improved incentives for tax administrators, private investors should be encouraged with different incentives.