Pdf analysis of internally generated revenue and its. The other source of revenue for local government is the internally generated revenue from their earnings on investments and receipts from taxes, fines, levies, etc. Forum ngf plans a peerlearning workshop to assist states to boost internal revenue generation. Internally generated revenue of nigerian states trends. In 1981, the national assembly fixed these proportions at 10% of the federation account and 10% of the total revenue of the state. What accounts for the inability on the part of revenue collectors to collect internally generated revenue in njikoka local government area 2. The importance, how to, effect causes relationship, comparison, history, role, solutions are discussed. This page provides nigeria government revenues actual values, historical data, forecast, chart, statistics.
A single instrument combining all the questions would have been too bulky and. Located in the southern part of nigeria, delta igr as collated by the nigerian bureau of statics recently was n40,805,656,911. Nbs data reveals how much nigerian states generated internally in 2017 the national bureau of statistics, nbs in its latest report has revealed how states across nigeria are performing in terms of. Internally generated revenue state governments and statecontrolled entities local governments collect and control all revenues generated from personal income tax, property tax, road tax, radio and television tax, among others. Internally generated revenue unit in higher institution therefore is to serve as relief to government expenditure. However these stats are a useful and worrying guide to each states internally generated revenue igr. Ways and strategies of generating revenue internally by the state government.
It also determined the impact of evasion and tax avoidance on the revenue generation in ogun state. Other taxes include internally generated revenues igrs of the state and local. It is recommended that university administrators should be more transformative in their leadership style in order to strengthen their revenue base for effectiveness in university management. States go after small businesses to boost internally generated revenue. To navigate through the ribbon, use standard browser navigation keys. The states with the poorest internally generated revenue of less than 10% in the south are imo, bayelsa, ekiti, and ebonyi states while in the north we have niger, nasarawa, sokoto, katsina, gombe. The role of marketing in nigerias economic development mrs. To raise its internallygenerated revenue, the osun state government on monday announced that butchers in the state would henceforth pay n700 as levy for every cow slaughtered for sale in the state. Internally generated revenues igr are revenues generated by states within the nigerian federation, independent of their share of revenue from the federation account. This is approved for students in accountancy business computer science economics engineering arts. Volatility of internally generated revenue and effects of.
Internally generated revenue across states in nigeria in. The area of this study was ebonyi state university abakaliki. Collection of taxes is one of the formidable options to generate revenue. In 2017, lagos state accounted for approximately 35. Federal government receives a boost through internally generated revenue from the. Nbs data reveals how much nigerian states generated. In lagos state most projects are executed with internally generated revenue in. Impact of internally generated revenue on performance of. It is this oil producing state that funds the economy of the nation and you hardly hear of the state government owing its workers as its internally generated revenue solves major problems in the region. Autoregressive conditional heteroscedasticity arch 1 model adopted revealed volatility in the igr. The lagos, rivers, and delta state governments led the remaining states in internally generated revenue, igr, in the last four years. Statistics show that twothirds of businesses operating in nigeria and other developing economies are. Merging of governments agencies the guardian nigeria.
The study attempts to provide answers to the following questions. Macroeconomic outlook and debt sustainability in nigeria. For goods with inelastic demand, sales tax is a reliable source of revenue. With the lingering economic struggles, there have been renewed calls for the nigerian government to diversify the economy away from the oil and gas sector. Local governments allocation from the federation account was later amended. Revenue generation is the nucleus and the path to modern development.
An assessment of internally generated revenue on local. Developing internally generated revenue in an era of. Published official statistics tend to combine the revenues from both. Abstract local government is faced with varieties of difficulties to source adequate revenue from federal government, state government and internally generated. Internally generated revenue igr and effectiveness of. A total of n931 billion was generated internally across states in nigeria in 2017.
Ebsu is made up of four 4 campusesfacultyofsocialsciences,humanitiesandarts. Alternative strategies for improving internally generated. States go after small businesses to boost internally. The results also revealed that, the tax evasion has adverse effect on government revenue generation in oyo state which typically results in revenue loss. Blend terms 25year maturity and 5year grace period. It is from these sources that local governments build their revenue base and discharge their financial responsibilities to.
Nigeria government revenues 20102019 data 20202022. Fiscal federalism, governance and internally generated revenue. Pdf the paper examines the poor internally generated revenues of the local. Internally generated revenue igr and infrastructural. Lasu school fees is the most expensive govt university in nigeria. Its impact on government developmental effort a study of selected local council in kogi east senatorial district edogbanya, adejoh. Revenue is the fulcrum of development in any state, for no state can effectively function and carry out its numerous duties to its citizenry without resources in the form of revenue. Tax compliance barriers and internally generated revenue. In 2016, lagos state accounted for approximately 37% of total internally generated revenue collected by states.
This is another effective way of earning internally generated revenue by the government of nigeria. Also, this type of tax is an effective tool for controlling inflation in the country. Data sourced from the annual reports of central bank of nigeria for the same period were used. Internally generated revenue are those revenues that are derived within the state from various sources. Read all the latest news, breaking stories, top headlines, opinion, pictures and videos about internally generated revenue from nigeria and the world on today. The effect of internal revenue generation on infrastructural development. Most tertiary institutions in nigeria have set up internally generated revenue units to source for funds in order to use in assisting government to finance the institutions. Nigeria runs a federal system of government that consists of three tiers, that is, the federal, state and local governments. This study assessed the effects of internally generated revenue on infrastructural development in akwa ibom state. In 1985, the states proportion was reduced to 10% of internal revenue. Impact of tax administration on government revenue citeseerx. Optimising internally generated revenue in nigeria 3 3 e introduction this paper a leap deliverable has been commissioned to provide a contextual study of factors linked to effective internally generated tax development5, in line with leaps objective to promote the generation and use of evidence on key public sector reform policy questions. The concept of internal revenue generation is not strange or absence in many management and economic literatures.
The dependency of nigerian states on remittances from the federal government is well known. This tax has a wide coverage and it is usually imposed on the basic necessities of life. This paper attempts to look at the nigeria tax administration and its capacity to reduce. Fiscal federalism, governance and internally generated. This paper discusses financing higher education in nigeria. Each of these spheres has constitutionally assi gned responsibilities to. Revenue generation in nigeria s local government is principally derived from tax. The institutions of local government in nigeria have been consistent. Analysis investigate the moderating effect of implementation challenges on erp adoption and internally generated revenue in southwest nigeria revealed that a significant positive linear relationship exists between internal generated revenue and implementation h urdles p revenue p nigeria. Remarks by the statistician general of the federation, dr yemi kale at the signing ceremony of a mou between the national bureau of statistics and the national social safety net coordinating office for the conduct of the national living standard survey. This report is the summary of a scoping study meant to. Analysis of internally generated revenue and its implications on fiscal viability of state governments in nigeria. It needed resources for accomplishing its social and economic goals.
A close look at the figures show that lagos igr which was n334billion in 2017 is over 35% of all the igr across the state in 2017. Key words taxation, revenue generation, small and medium enterprises, tax monitoring, tax data base, tax education, internally generated revenue igr. The purpose of the study was mainly to identify the major sources and utilization of internally generated financial revenue by nigerian university. The more revenue government generate the more expenditure activities would be initiated by the government to utilize the revenue. Internally generated revenue archives premium times nigeria. Total revenue in lagos state comprises internally generated revenue. The population of the study consisted of all the 102 university administrators from the seventeen federal universities in southern nigeria. Pdf strategies and ways of revenue generation internally in.
Examining weak subnational finances in nigerian states chukwuma agu african institute for applied economics,enugu, nigeria abstract one of the most crucial challenges to nigeria s ailing fiscal federalism is the inability of states to raise, retain and manage revenue. Internally generated revenue across states in nigeria in 2017. Government revenue at all level are generally divided in to two, these are internally generated revenue internal development fund and externally generated revenue external transfers. Internally generated revenue state governments and statecontrolled entities local governments collect and control all revenues generated from personal income tax, property tax, road tax, radio and television tax among others. The understanding of this concept as investigated in this study lies not only on knowing what it stands. This motivated investigation of the components as contributory factors to the volatility.
Narrowing down to the case study, ebonyi state board of internal revenue, abakaliki, ebonyi state was created on 1 st october, 1996 out of existing abia state and enugu state by the president and commanderin chief of the armed forces of the federal republic of nigeria, general sani abacha. Optimising internally generated revenue in nigeria perl nigeria. In nigeria oil revenue seems to be the major source of revenue basically because others sources are not adequately harnessed effectively. Get free research paper on evaluation of internally generated revenue and economic growth of kano state from 19992014 project topics and materials in nigeria. In this work, volatility of internally generated revenue of akwa ibom state with the contributory effects of its components was the major interest. It is recommended that university administrators should be more transformative in their leadership style in order to strengthen their revenue base. Optimising internally generated revenue in nigeria. Lagos, rivers, delta lead others in internally generated. The purpose of the study was mainly to identify the major sources and utilization of internally generated financial revenue by nigerian university administrators. The problems of internal revenue generation in the nigerian local.
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