Public Sector Governance and the Misappropriation of Tax Revenue in Nigeria

Public sector governance plays a critical role in ensuring the effective management of tax revenue for national development. However, in Nigeria, weak governance structures, corruption, and lack of accountability have resulted in the widespread mismanagement and misappropriation of tax revenue, thereby undermining economic growth and public trust in the state and its institutions. This study examines the relationship between public sector governance and the mismanagement of tax revenue in Nigeria, with a focus on identifying the key factors responsible for financial leakages within the system. Adopting a qualitative research approach, data were collected primarily from secondary sources, including government reports, audit reports, policy documents, legislative records, publications of anti-corruption agencies, and relevant academic literature. These data were systematically analyzed using thematic and content analysis, which enabled the identification of recurring governance-related challenges influencing tax revenue management. The study reveals that weak institutional frameworks, lack of transparency, political interference, inadequate accountability mechanisms, and ineffective regulatory oversight are central to the misappropriation of tax revenue in Nigeria. The findings further demonstrate that the mismanagement of tax revenue has adversely affected infrastructure development, the provision of social services, and overall economic stability. The study concludes that strengthening governance mechanisms, through enhanced fiscal transparency, institutional reforms, and empowered anti-corruption agencies, can significantly reduce revenue leakages. It therefore recommends comprehensive policy reforms aimed at promoting accountability, enforcing strict tax administration regulations, and leveraging digital technologies to improve revenue monitoring and management. Ultimately, the study contributes to the broader discourse on good governance and sustainable public finance management in Nigeria.