Internally Generated Revenue Research Articles

Impact of revenue on budget implementation in Nigeria: an Appraisal of FCTA

The study examines the impact of Revenue on Budget Implementation in Nigeria with particular reference to Federal Capital Territory Administration (FCTA). The data was obtained from secondary sources. The variables studied were Actual Total Expenditure as dependent variable while Actual Recurrent Revenue Receipt and Actual Capital Receipt as independent variables. The methodology employed was OLS regression model. The Result suggests that, the Actual Recurrent Revenue Receipt has a positive and significant impact on Budget Implementation. On the other hand, Actual Capital Receipt had a positive but insignificant impact on Budget Implementation. The researcher concludes that Actual Recurrent Revenue Receipt and Actual Capital Receipt have positive impact on Budget Implementation; however, bureaucratic bottleneck militates against budget implementation efficiency. In view of that, the study recommends that, there is need for increase in capital grants to enhance capital receipts in order to finance capital projects. FCTA should improve on its revenue collection by exploring other sources of Internally Generated Revenue (IGR) like Property Taxes on unoccupied estates in the city so as to boost performance in revenue collection and improve on collection of water bills etc. Relying on the existing tax base, FCTA can maximize on the collection of taxable (withholding tax etc.) and vatable items on goods, supplies and services through proper inspection of taxable and valuable items before payment to all and sundry. There is also the need for digitization of the budget system, incentives and adequate training to serve as motivation, improve capacity, collection of revenues, enhance the budget preparation exercise and implementation, as well as to guard against all sorts of behaviors.

State Taxation of the Motorcycle Transport Business and Internally Generated Revenue in Ebonyi State, Nigeria, 2015 to 2021

In classical literatures, the informal sector is regarded as all those economic activities that are neither taxed nor monitored by any form of government. However, with the downturn of economic activities in Nigeria due to the dwindling oil revenue which forms the major revenue generation and export earnings of Nigeria, the informal sector, specifically the motorcycle transport business popularly known in Nigeria as Okada has come under some form of government taxation and monitoring in some states in the country. This was to shore up their revenue base which has dwindled over the years. Extant literatures have not been able to examine the contribution of informal sector, specifically, the motorcycle transport business to internally generated revenue of the sub-units, especially Ebonyi State within the period under study. Thus, we pose the question: has the taxation of the motorcycle transport business operation improved on the internally generated revenue of Ebonyi State between 2015 and 2021? We anchored our analysis on Public Choice Theory of politics and economics. Data for the study were collected through both primary and secondary sources. The study found that despite the intensive taxation of the informal sector in Ebonyi State, specifically, the motorcycle transport business; the internally generated revenue of the state seems to be decreasing rather than increasing, given the number of taxable objects that has been brought under its internally generated revenue sources. The study recommended that the government should do more in the area of its internally generated revenue to ensure efficiency in collectability and remittances.

The Lagos Lagoonal Economy up to the Present Time: Dredging, Sand Mining, Water Transportation and the Rise of Waterfront Cities

This paper examines the economy of Lagos State in Nigeria as the product of a lagoonal construct. From colony status in 1861 which served the British Raj as a beachhead for penetrating the hinterland, the Lagos lagoonal system aided the steady rise of the city to assume ever-increasing sociopolitical significance, including the capital of the Colony as well as the newly independent Nigeria in 1960. These developments consolidated its lead in internally generated revenue (IGR) over other sub-national authorities. Primary and secondary data sources were used with qualitative analytical methodology, including quantitative illustrations and tables, to study the role of the lagoon system in the city’s overall morphology. The findings show that the lagoonal system critically supported the major productive sectors such as inland transportation, manufacturing, sand mining, real estate development, and mercantilism. The conclusion includes an analysis of two critical issues in the future of the megacity, namely, harnessing the waterways to ease longstanding commuting difficulties in a N41 trillion market touted as Africa’s 5th richest economy and the likely impact of emergent societal factors on its decline as a historic political and economic powerhouse.

Comparative Study of the Effect of Personal Income Tax Amendment Act 2011 on Internally Generated Revenue of Adamawa State, Nigeria

Comparative Study of the Effect of Personal Income Tax Amendment Act 2011 on Internally Generated Revenue of Adamawa State, Nigeria

Perceived Effect of Monetary Policy Measures on Internally Generated Revenue (IGR) and Funding of Universities in Nigeria

The study looked into the perceived effect of monetary policy measures on internally generated revenue (IGR) and funding of universities in Nigeria. Ex post facto design was adopted for the study. Two hypotheses were tested at 0.05 alpha level. The sample size of 60 was drawn the through multistage procedure. A researcher’s developed instrument, 'Effect of Monetary Policy Measures on IGR and Funding of Universities Questionnaire (MPMIGRFUQ)' was used to collect data. The Cronbach Alpha method, with the coefficient of 0.92 was used to ascertain the reliability of the instrument. T-test was adopted for analysis and testing of the hypotheses. It was found that the mean ratings of male and female lecturers of banking and finance lecturers with regard to the effect of monetary policy measures on IGR and funding of universities did not differ significantly. The study recommended among others opinions that more researches through primary data should be carried out beyond the scope of opinions of banking and finance lecturers, by involving respondents from different walks of life, for more inclusive and reliable outcomes.

Effects of Tax Evasion and Avoidance on Oyo State’s Internally Generated Revenue

Tax evasion and avoidance are both phenomena that are probably as old as taxation itself. Literature revealed that tax avoidance and evasion represent some of the perplexing problems facing the Nigerian economy. The study adopts a quantitative research design, employing a standardized questionnaire as the primary research instrument. The study population comprises personnel from the Oyo State Internal Revenue Service. The findings revealed a significant positive relationship between tax evasion and IGR, indicating that tax evasion negatively impacts revenue generation. Similarly, tax avoidance is found to have a significant negative relationship with IGR, implying its detrimental effect on revenue. The study concluded that resistance towards tax obligations leads to the disturbance of the government's essential services, such as health services, education, sanitation, transportation, and infrastructure. The study recommends that urgent steps should be taken by public office holders to live up to expectation when it comes to transparency, accountability and the war against corruption.

The Impact of State Internally Generated Revenues on Total State Revenues and Financial Viability: A Case Study of Lagos State, Nigeria

Internally Generated Revenue (IGR) has been a focus of attention in public financial management because of its key role to Total State Revenue and Financial Viability (TSR&FV). Constant neglect of IGR in states due to over reliance on federal allocation has led to shortage of TSR&FV for funding and governance. Researches have been conducted on IGR in public sector with focus on transport infrastructures, personal income tax, tax administration and tax evasion but with less emphasis on the impact of IGR on TSR&FV. Therefore, this study examined the probable impact of state IGR on TSR&FV of Lagos State, Nigeria. The study adopts ex-post facto research design. Secondary data were extracted from Nigeria Bureau of Statistics annual report of 2011 to 2021. Data were analyzed with descriptive and inferential statistics at 5% level of significance. The study revealed that state IGR positively impact TSR&FV (Adj.R2=0.99250, F(5,10)=244.1106, p=0.000). The study concluded that IGR have significant influence on TSR&FV and that IGR contribute maximally to TSR&FV. Moreover, Pay As You Earn tax has the highest contribution (63.9%) to state IGR while direct assessment and road tax have the least contribution of 3.9% and 2.1%, respectively. The study recommends that State government should ensure better revenue management and good governance to boost tax morale and tax compliance. Government should also put more policies on revenue generation, training of revenue officers, and funding of revenue agencies. Similarly, new revenue base should be identified and pursued within the ambit of the law to drive TSR&FV.

Student-Staff Partnerships, Internally Generated Revenue and Financial Inclusion towards Entrepreneurial Venture in Nigerian Universities: Systematic Review of Literature

This systematic review of the literature includes an assessment of student-staff partnership, internally generated revenue (IGR), and financial inclusion in Nigerian universities with an eye toward entrepreneurial ventures. Financial inclusion promotes the development and entrepreneurial ventures. There have been studies on IGR student-staff partnerships and financial inclusion in Nigerian universities. This study synthesizes and evaluates previous research. During the systematic review, academic databases are searched. Fifty eligible studies were examined. We shed light on the student-staff partnership, financial inclusion, and IGR in Nigerian university entrepreneurial ventures. Financial inclusion in the analysis is defined as financial resources, financial literacy, and student and staff entrepreneurial venturing. It emphasizes IGR as a trustworthy source of funding for university entrepreneurial ventures. Student-staff partnerships as joint research, mentoring, and student-led businesses, according to the review, promote financial inclusion. The synthesis recommends a coordinated approach to evaluating financial inclusion from IGR and student-staff partnerships in Nigerian universities. More research on entrepreneurial venture and financial inclusion strategies, best practices, and policy recommendations is required. This systematic review of the literature summarizes financial inclusion, IGR, student-staff partnerships, and entrepreneurial ventures in Nigerian universities. The findings support the creation of targeted initiatives by policymakers, university leaders, and researchers to improve financial inclusion, empower students and members of staff, and foster a thriving entrepreneurial venture ecosystem in Nigerian universities.

Elements of Internally Generated Revenue and Economic Growth in Lagos State

State governments in Nigeria need revenue to invest in social infrastructures and creating social safety nets to stimulate economic growth. One of the sources of revenue that state governments have direct control over to maximize domestic revenue is the internally generated revenue. Empirical evaluation of the relationship between internally generated revenue and economic growth, therefore, becomes imperative. Consequently, this study examined the relationship between the components of Internally Generated Revenue (IGR) and Economic Growth (GDP) in Lagos State. The research design is ex-post facto while the period of study was from 2012 to 2020. The data obtained on the dependent and explanatory variables from National Bureau of Statistics and Lagos State Bureau of Statistics was analysed with the Autoregressive Distributed Lag technique. The results show a long-run significant relationship for other taxes, direct assessment and road taxes with gross domestic product in Lagos state, leaving out pay as you earn with insignificant impact. In the short run, however, other taxes, direct assessment, pay as you earn and road taxes have positive and significant relationship with gross domestic product. The F-statistic of 824.42 with a probability value of 0.000 at 1 percent level suggests that internally generated revenue exerts significant influence on gross domestic product in Lagos State. The study concluded that internally generated revenue strengthened economic growth in the state. Lagos State government should sustain the current tempo of domestic revenue mobilization drive with special emphasis on pay as you earn as a component of internally generated revenue to spur economic growth.

Internally Generated Revenue and Infrastructural Development in Akwa Ibom State, Nigeria

Public revenue is utilized for the welfare of the citizens of a nation. In Nigeria, public revenue is derivable from the statutory allocation from the federation accounts and internally generated revenue. This study assessed the relationship between internally generated revenue and infrastructural development, in the form of capital expenditure in Akwa Ibom State, for the period 2007- 2020. The objective was to ascertain the contribution of internally generated revenue to infrastructural development on health, education, and sanitation. The ex post facto research design was adopted, where secondary data were obtained from the office of the Accountant General of Akwa Ibom State. The data were analyzed using simple regression analyses to test the hypotheses. It was found that internally generated revenue (IGR) has a positive relationship with infrastructural development in the State, showing a positive and significant relationship with development in education, and an insignificant but positive relationship with health and sanitation. Consequently, it was concluded that a balanced approach to internally generated revenue (IGR) appropriation to the infrastructural development in all the areas was absent. It was therefore recommended that internally generated revenue (IGR) allocations should be redirected to infrastructural development on health and sanitation since health and sanitation are directly linked to the life of every citizen of the state. This will bring about a balanced approach to the appropriation of revenue on capital expenditure which can motivate citizens to pay their taxes regularly and avoid tax evasion.

Internally Generated Revenue in Local Government: The Role of Signage and Advertisement Agency

Internally Generated Revenue (IGR) is vital to the total funds of Local Government (LG) for financing LG expenditures. IGR plays an important role in good governance but constitutes a small fraction of LG's total revenues. However, IGR losses and untapped revenues are very common in LG. This is perceived to have adversely affected LG funds. Many studies have been done on IGR, but not many focused on the role of Signage and Advertisement Agency (SAA). This study examined IGR and the role of agents in revenue generation, using Lagos State Signage and Advertisement Agency (LASAA) as a case study. The study employed an explanatory research design. Secondary data on LASAA revenues generated for LGs were used. Descriptive statistics of data analysis were employed. The study revealed that LASAA as an agent of LGs generated ₦13.69 billion for the years covered. Similarly, generated revenues increased by 138.68% in 2021 over 2015 figure. Also, the study revealed that the creation of SAA in the state for revenue drives and control of outdoor advertising has been an added value to LG funds for providing goods and services. The study recommends that SAA should design appropriate assessment methods that would be acceptable and affordable for payment by all payers. LGs should ensure that signage revenues are invested in public goods and services. This would enhance the standards of living of the citizens and also build payers' trust for voluntary compliance. Additionally, LASAA should increase its public awareness and enlightenment on the importance of signage and advertisement payment to all stakeholders.

Internally Generated Revenue (IGR) and the Economic Viability of States in Nigeria

Purpose: The purpose of this study is to investigate Internally Generated Revenue (IGR) and the Economic Viability of States in Nigeria using State Government Debt Stock. Specifically, the study seeks to determine the effect of IGR on State government expenditure. Methods: Secondary data were used for this study. It used an annual panel data set spanning from 1986 to 2021 for six states each from Nigeria's six geopolitical zones. A Panel Vector Error Correction Model (PVECM) was used as the method of analysis. Results: Results showed that the IGR of States in Nigeria had a positive effect on State government expenditure. The Impulse Response Function of expenditure to shocks from IGR indicates that IGR for the periods under analysis positively affected State government expenditure, increasing their expenditure profile for the majority of the period under analysis. The result of the variance decomposition test of State government total debt stock (TDS) shows that IGR had the greatest shock on the total debt stock of State governments in the country after its own shock. The findings also revealed a mixed and varied outcome, demonstrating both a positive and negative influence of IGR on the overall debt stock of the state government. Implications: The study is expected to contribute to good economic management, such as managing the debt load at reasonable levels, as well as adequate economic planning backed by cost-effective expenditure. It will also contribute to the economic sustainability of Nigerian states. The uniqueness of this research is obvious in its ability to address the statewide problem of over-dependence on the federal government’s allocation.

Boosting Internally Generated Revenue in Local Government: Signage and Advertisement Revenue as an option for Consideration

Internally Generated Revenue (IGR) constitute a small fraction of total revenue in most Local Government (LG), this has been a major factor to persistent insufficient funds experienced in LG. Constant paltry revenue in LG has led to inefficient service delivery and also perceived to have adversely affected LG performance and budget implementation. Therefore, there is need to diversify the IGR base of LG, this calls for study on how to boost IGR in LG with focus on Signage and Advertisement Revenue (SAR). Studies have been conducted on IGR, but not many studied the effect of SAR on IGR. Therefore, this study examined the probable effect of SAR on IGR of LG in Lagos State, Nigeria. The study employed exploratory research design. Secondary data were extracted from Auditor’s General Report 2015-2021, these were analysed with descriptive and inferential statistics at 5% level of significance. The study revealed that SAR positively have effect on total IGR (Adj.R2=0.713431, F(1,7)=347.0494, p=0.000). The study concluded that SAR has significant effect on IGR of local government and that SAR contribute maximally to total IGR of LG. The study further recommends that mechanism for enhancing IGR in LG should be entrenched while revenue automation is critical for efficient signage and advertisement revenue generation. LG should also ensure that IGR are invested on provision of goods and services that would enhanced citizens’ trust and payer revenue compliance. In addition, policies should be put in place to make IGR a priority for stimulating LG growth and development.

Internally Generated Revenue (IGR) in Delta State: A Tool for Infrastructural Development

Purpose: The study examines internally generated revenue (IGR) in Delta State as a tool for infrastructural development. The Ordinary Least Squares was used to analyze the impact of internally generated revenue on infrastructural development in Delta State; the data used covered the period between 2008 to 2018.
 Methodology: The data was generated from a combination of publishing materials and data from Delta State Ministry of Finance
 Findings: The study findings indicate that the internally generated revenue has an insignificant impact on government expenditure on health. This indicates that the fund generated internally within the state has not improved the spending on the health infrastructure. On the contrary, on education infrastructure, the result indicates that the internally generally revenue by the Delta State Government has a significant impact on government expenditure on education infrastructure. This result indicates that the internally generated revenue from Delta State has improved the money spent on the educational infrastructure.
 Unique Contribution to Theory, Practice and Policy: Based on the findings, the researcher recommends that the government should spend at least 40 percent of the internally generated revenue in financing the health sector through improved budgetary provision. This will improve the development process in Delta State. The Delta State government should put in place measures to improve the total money generated internally by levying and collating appropriate taxes.

Official statistics: Providing data acumen in the advent and continuous presence of COVID-19

COVID-19 has disturbed people’s patterns of life and sources of income, particularly the income of informal sector business operators and households worldwide. As extraordinary policy initiatives are calibrated, the requirement for timely statistics on health and economic development rises. Thus, the purpose of this research is to analyze the Internally Generated Revenue (IGR) available to Nigerian states in 2020 and 2019 by examining the disparities caused by the COVID-19 pandemic and its impact on the country’s approximately 200 million people. The exploratory research approach was used, with a particular emphasis on descriptive and trend analysis of the data acquired during the study periods. According to the findings, 46% of Nigerian states, including the Federal Capital Territory, suffered reductions in IGR generation as the pandemic surged, whereas 35 per cent of the states experienced a corresponding increase in IGR and confirmed COVID-19 infections. However, 16% of the states reported an inverse growth in their IGR as the number of verified COVID-19 cases decreased. To deal with the unprecedented shocks caused by the ongoing existence of COVID-19, which necessitate the tapping of new information and revenue streams, a continual review of countries’ revenue sources is required.

THE IMPACT OF COVID-19 ON INTERNALLY GENERATED REVENUE OF SOUTH-WEST NIGERIA

Purpose: the paper investigated the impact of COVID-19 on the Internally Generated Revenue (IGR) of southwest Nigeria comprising Ekiti state, Lagos state, Ogun state, Ondo State, and Osun state, Oyo state.
 Methodology: the authors sourced data from secondary sources; the Internally Generated Revenue was obtained from the annual publication of the National Bureau of Statistics covering 2019 and 2020 and the COVID-19 confirmed cases were obtained from National Disease Control Centre.
 Findings: The result showed that paired correlation of IGR 2019 and 2020 showed a strong positive correlation and the same was also true of COVID-19 cases and IGR 2020 (p = 0.001). The result of the t-test showed no significant difference (p > 0.05) between IGR 2019 and IGR 2020 quarter on quarter.
 Unique Contribution to Theory, Practice and Policy: The result supported two theories; The ‘Pecking Order Theory and Ability-To-Pay, Internally Generated Revenue focuses on funds derived within the state, just like internal financing to a firm. The internally generated revenue did not decline during the pandemic because taxes were paid since the majority were paid salaries during the pandemic and transactions were conducted online via platforms, more importantly, the Central Bank of Nigeria did not shut down so economic activities were not paralyzed but migrated to online. The study proved that in times of crisis, IGR may not be adversely affected if all the channels of generating income are available to taxpayers. This aids budget and planning during a crisis period, furthermore, the government will be able to plan and channel funds to areas of need accordingly. The result further supported the new model of working; people can work remotely and pay their taxes despite the lockdown.

Effect of Tax Reforms on Federal Government Internally Generated Revenue in Nigeria

Effect of Tax Reforms on Federal Government Internally Generated Revenue in Nigeria

Public private partnership (PPP) as an aid to tertiary institution support for internally generated revenue (IGR): a case study of yaba college of technology

This study is on the contribution of public private partnership (PPP) to education development by generating revenue to sustain the infrastructure and academic decency of Yaba College of Technology, Lagos in Nigeria. Higher Education is a veritable tool for socio-economic development of any country. Training and educating society are the key influence of tertiary institution but they need to be financially sustained to carry out functional duties in terms of resources and development. PPP is seen as a solution to revamping educational sector that is experiencing failure in research and infrastructure growth everyday due to insensitivity on the part of government to finance education by meeting up the minimum requirement benchmark put forward by the United Nation (UN). The study identified the sources of internally generated revenue (IGR) of Yaba College of Technology, limitation facing these IGRs and investigated key issues affecting attempts to improve the IGR. The survey research strategy was used through questionnaire distribution to academic and non-academic members of staff for data collection. A total 150 questionnaires were returned. Sale of admission forms and Tuition fees and revenue from commercial ventures were revealed as main source of IGR. Analysis of the questionnaires showed key issues with IGR improvement to include performance, marketability, internalization, research and development as the challenges facing the institutional growth of the college. The study therefore recommends that concerted effort should be made by the government and private sectors to providing lasting solution to decline in educational sector of Nigeria.

Public Private Partnership (PPP) as an Aid to Tertiary Institution Support for Internally Generated Revenue (IGR): A Case Study of Yaba College of Technology

This study is on the contribution of public private partnership (PPP) to education development by generating revenue to sustain the infrastructure and academic decency of Yaba College of Technology, Lagos in Nigeria. Higher Education is a veritable tool for socio-economic development of any country. Training and educating society are the key influence of tertiary institution but they need to be financially sustained to carry out functional duties in terms of resources and development. PPP is seen as a solution to revamping educational sector that is experiencing failure in research and infrastructure growth everyday due to insensitivity on the part of government to finance education by meeting up the minimum requirement benchmark put forward by the United Nation (UN). The study identified the sources of internally generated revenue (IGR) of Yaba College of Technology, limitation facing these IGRs and investigated key issues affecting attempts to improve the IGR. The survey research strategy was used through questionnaire distribution to academic and non-academic members of staff for data collection. A total 150 questionnaires were returned. Sale of admission forms and Tuition fees and revenue from commercial ventures were revealed as main source of IGR. Analysis of the questionnaires showed key issues with IGR improvement to include performance, marketability, internalization, research and development as the challenges facing the institutional growth of the college. The study therefore recommends that concerted effort should be made by the government and private sectors to providing lasting solution to decline in educational sector of Nigeria.

Geographical determinants and hotspots of out-of-school children in Nigeria

Abstract In Nigeria, children lack access to primary school education, and this hinders their social, cognitive, emotional, and physical skills’ development. With one in every five of the world’s out-of-school children in Nigeria, achieving universal primary education by 2030 remains a challenge. Several studies have investigated the factors that have led to an increase in out-of-school children (OOSC); however, these studies are based on individual level and household predictors with little evidence on the geographical determinants. Hence, this study examines the relationship between OOSC and the socio-economic attributes of the geographical location where they reside. Findings of the spatial analysis show that Sokoto, Zamfara, Yobe, Taraba, and Plateau are the hotspots of out-of-school children. The result further reveals that there is spatial variation in the predictors of out-of-school children in the country. Poverty and internally generated revenue (IGR) predict more cases of school non-attendance in northern Nigeria while foreign direct investment determines the number of children that are out-of-school in the southern region. The study recommends spatially explicit policies to reduce the number of OOSC in Nigeria.