OIL AND NON-OIL TAX REVENUES ON HUMAN CAPITAL DEVELOPMENT IN NIGERIA: A DOLS-BASED EMPIRICAL INVESTIGATION

Objectives: This study investigates the effects of oil and non-oil tax revenues on human capital development in Nigeria over the period 2011Q1–2024Q4, with emphasis on short-run and long-run dynamics. Theoretical Framework: The study is grounded in the public finance–human capital development nexus, which posits that effective revenue mobilization and fiscal allocation promote investments in education, health, and skills development, thereby supporting inclusive and sustainable growth. Method: Quarterly time-series data were analysed using the Dynamic Ordinary Least Squares (DOLS) technique to examine contemporaneous, short-run, and long-run relationships between oil revenue, non-oil tax variables, and human capital development. Results and Discussion: Petroleum profit tax shows a positive but insignificant contemporaneous effect, a significant short-run lagged effect, and a significant positive long-run impact on human capital development. Crude oil revenue exhibits a weak positive short-run effect but a strong and significant long-run influence, while oil rent has no significant short-run effect but a meaningful positive long-run impact. Capital gains tax records an insignificant short-run effect but a significantly negative long-run relationship. Education tax demonstrates significant positive contemporaneous and short-run effects, though its long-run effect is insignificant. Information and technology tax shows insignificant immediate impact but significant positive short-run and long-run effects. Overall, oil revenue and oil-related tax mobilization remain dominant drivers of human capital development in Nigeria. Research Implications: The study highlights the need for efficient, transparent allocation of tax revenues toward education, healthcare, and skills development. Originality/Value: The study provides new evidence using quarterly data and a DOLS framework to explain the dynamic revenue–human capital relationship in Nigeria.