Internally generated revenue of nigerian states trends. This motivated investigation of the components as contributory factors to the volatility. Inspite of the recession, the state is still flourishing. Statelevel pools are used, along with contributions from the national pool, for publiclyfinanced services. Developing internally generated revenue in an era of diversification. 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. Volatility of internally generated revenue and effects of. Pdf impact of personal income tax on internally generated. This paper underpins deliberation within perl about how to work with nigerian partners to push forward the internally generated revenue igr. The inability of states and local governments in nigeria to generate enough revenue to. This is approved for students in accountancy business computer science economics engineering arts. Developing internally generated revenue in an era of.
The results also revealed that, the tax evasion has adverse effect on government revenue generation in oyo state which typically results in revenue loss. Jan 01, 2005 impact of personal income tax on internally generated revenue performance in oyo state nassar, m. 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. In this work, volatility of internally generated revenue of akwa ibom state with the contributory effects of its components was the major interest. Value added tax vat and inflation in nigeria 1990 to 2003. Examining weak subnational finances in nigerian states chukwuma agu african institute for applied economics,enugu, nigeria abstract one of the most crucial challenges to nigerias ailing fiscal federalism is the inability of states to raise, retain and manage revenue. Definition of internally generated revenue in the dictionary. Revenue generation in local government areas problems and prospects includes abstract and chapter one, complete project material available revenue generation in local government areas problems and prospectsabstractthe adverse situation in the various local government areas of nigeria has led the researcher to go into this very topic. Mathematical analysispredictions of internal generated. The dependency of nigerian states on remittances from the federal government is well known. Nigeria lies within the tropics with two main vegetation zones. The paper leverages on available literatures to revalidate the inevitability of igr as long as the government or other university proprietors fails to provide adequate funding for the universities operating. Revenue generation is the nucleus and the path to modern development.
Nature of the nigerian economy nigeria is one of the largest geographical units in west africa and occupies a land area of 923,768 square kilometers. If the smes gdp contribution could be translated into tax revenue, governments internally generated revenue could make significant appreciation ali et al. In 2017, lagos state accounted for approximately 35. It is from these sources that local governments build their revenue base and discharge their financial responsibilities to the local area. This nigerian state also has been listed among the highest revenue generating states with n15,663,514,824. Scope of the study tax revenue generated by the federal government of nigeria and tax revenue generated by some selected states were obtained in order to assess the impact of taxation on revenue generation by the federal government of nigeria and by some selected states in nigeria from 20022011. Information and translations of internally generated revenue in the most comprehensive dictionary definitions resource on the web. The national bureau of statistics publishes internally generated revenue at state.
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. The ols regression of igr volatility on the kcomponents. The effect of internal revenue generation on infrastructural. The population of the study consisted of all the 102 university administrators from the seventeen federal universities in southern nigeria. D 1department of educational management, faculty of education, adekunle ajasin university, akungbaakoko, ondo state, nigeria. Neglect of many revenue sources, especially those at mdas. Overall, government revenue can be divided into oil revenue and nonoil revenue and these have been highlighted below. An assessment of internally generated revenue on local. Further, 3 increasing igr in a way that does not increase poverty depends on the instruments used and the specific economic conditions in a given state. Looking at the composition of igr at state level is higher than that of local government level. Nigerias richest state in 2016 by internallygenerated revenue. The inability of states and local governments in nigeria to generate enough revenue to cope with their expenditure responsibilities has been a serious challenge. 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. The study examined the impact of value added tax on the internally generated revenue of lagos state for a 6year period ranging between 2011 and 2016.
The study investigated the impact of internally generated revenue igr on economic development of nigeria. Nigeria government revenues 20102019 data 20202022. Mathematical analysispredictions of internal generated revenue igr in some states in nigeria. The average percentages of internally generated revenue in relation to the federal allocation were between 59 percent for most nonoil producing states in the recent past.
Optimising internally generated revenue in nigeria 2 2 e run. The state was followed by imo, whose igr in 2014 dropped by 48. 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. Weak structural, institutional, legal and personnel commitment. It is worthy to note that in this study one state was selected from each of the six geopolitical zones in the country north central zone, south southern. Forum savi state accountability and voice initiative sparc state partnership for accountability, responsiveness and capability wb world bank igr internally generated revenue usd united states dollars paye pay as you earn bir board of internal revenue gdp gross domestic product nbs national bureau of statistics. 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. Tax compliance barriers and internally generated revenue.
The states with the poorest internally generated revenue of less than 10% in the south are bayelsa, ebonyi, osun, ekiti, akwaibom and imo states while in the north we have gombe, zamfara. In 2016, lagos state accounted for approximately 37% of total internally generated revenue collected by states. Pdf analysis of internally generated revenue and its. The main aim and objectives of the study the main aim of this study is to ascertain the sources of internally generated revenue for asa local government area of kwara state and the extent to which the resources have been.
Taxation only works if it is implemented in step with visible service delivery and development. This study assessed the effects of internally generated revenue on infrastructural development in akwa ibom state. Nigerian states and internally generated revenue logbaby. Annual summary of tax revenue collected in nigeria from 2000 2014 source. Twentyeight 28 states recorded growth in igr while eight 8 states which includes abia, anambra, benue, taraba, kebbi, kwara. 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. The paper examined the measures of generating internal revenue for government in oyo state. Internally generated revenue, revenue generation, enhancement, strategies. It is no longer news that nigerias oil is depleting. Nigeria are not seeing the need to improve their internally generated revenue, even when. Pdf internally generated revenue igr and infrastructural.
Pdf the study investigated the impact of internally generated revenue igr on economic development of nigeria. Lagos state generates more igr than 32 states combined. Total tax revenue and total federal government revenue from 1 %4 to 2008. The importance, how to, effect causes relationship, comparison, history, role, solutions are discussed. Internally generated revenue unit in higher institution therefore is to serve as relief to government expenditure. Pdf on oct 17, 2018, michael oseni and others published internally generated revenue igr in nigeria. The lagos state commissioner for economic planning and budget, mr. Impact of internally generated revenue on performance of. This can be traced to the time the british came to nigeria, they enacted various taxing ordinances notably the native revenue ordinance 1917, the native direct taxation ordinance 1937 and the colony taxation ordinance 1940 and the income tax ordinance 1943.
Nov 29, 2016 so, today i will consider the top richest state in nigeria 2016 based on the internally generated revenue igr of each state. However these stats are a useful and worrying guide to each states internally generated revenue igr. The impact of internally generated revenue on economic. Alternative strategies for improving internally generated revenue igr of state universities in. The average percentages of internally generated revenue in relation to the federal allocation were between 59 percent for most nonoil producing states in. Internally generated revenue at state level national bureau of. Enhancing internally generated revenue science arena. The purpose of the study was mainly to identify the major sources and utilization of internally generated financial revenue by nigerian university. For instance, oil sec tor share in total revenue was 54. The national bureau of statistics nbs last week released some interesting data set on the internally generated revenue igr profiles for nigerias 36 states between 2010 and 2012. Alternative strategies for improving internally generated. The paper argues that displacement of agricultural products by oil as the focal point of national revenue, and the attendant relegation of the principle of derivation in revenue allocation, is the root cause of the revenue allocation. A number of studies have been carried out on problems of revenue generation in nigeria.
May 17, 2017 the dependency of nigerian states on remittances from the federal government is well known. Project topic on revenue generation in local government areas. The exportation of oil in from the first quarter of the 70s shifted the revenue base in favour of oil odusola, 2006, iyoha, 2003. The scope of the study was limited to tax revenue generated by the federal government of nigeria and tax revenue generated by some selected states in nigeria from 20022011. Internally generated revenue at state level q2 2018. Its impact on government developmental effort a study of selected local council in kogi east senatorial district edogbanya, adejoh. Forum ngf plans a peerlearning workshop to assist states to boost internal revenue generation. To navigate through the ribbon, use standard browser navigation keys. Other poor internal revenue earners are gombe which generated n2. Nbs data reveals how much nigerian states generated. 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. Pdf the impact of internally generated revenue on economic. Nigeria is the lowest in africa in terms of budgetary.
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 commander in chief of the armed forces of the federal republic of nigeria, general sani abacha. Internally generated revenue igr and effectiveness of. Fiscal federalism, governance and internally generated revenue. The internally generated revenue igr is one of the sources of revenue available to the nigerian government and generated within government jurisdiction. The improper use of igr and corruption have remained a setback to. Revenue generation involves the gathering of resources for the benefit of the society revenue generation in nigeria faces with so many challenges. Analysis of internally generated revenue and its implications on fiscal viability of state governments in nigeria. This paper discusses financing higher education in nigeria. Revenue generation in local government areas problems and prospects includes abstract and chapter one, complete project material available revenue generation in local government areas problems and prospectsabstractthe adverse situation in the various local government areas of nigeria has led the researcher to go into this very.
Autoregressive conditional heteroscedasticity arch 1 model adopted revealed volatility in the igr. This paper discusses the role of internally generated revenue igr as inevitable alternative funding for higher education in nigeria. In this paper, we apply the linest model of the microsoft. Improved internally generated revenue and sustainable budget.
Both secondary and primary data were used for the study. Optimising internally generated revenue in nigeria partnership to. Relevance of tax revenue resources to infrastructural. Fiscal federalism, governance and internally generated. Under capacity utilization of some revenue sources. Internally generated revenue news latest breaking stories. At a first glance, the data was not surprising as states in southern nigeria continue to show dominance in terms of economic activity. Imo is a hub for business and there is no better place to invest now in nigeria than imo state. The purpose of the study was mainly to identify the major sources and utilization of internally generated financial revenue by nigerian university administrators. Lagos state retains its number one position in igr with a total revenue generation of n268. Internally generated revenue, capital expenditure, budget, cross river state. It needed resources for accomplishing its social and economic goals. The chairman, akwa ibom board of internal revenue service, okon okon, has said that the state recorded n6. 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.
Internally generated revenues igr are revenues generated by states within the nigerian federation, independent of their share of revenue from the federation account. Problems of internally generated revenue for local. Since then, oil has constituted the bulk of public generated revenue, export earnings and foreign exchange reserve obadan, 2012. The national bureau of statistics, nbs in its latest report has revealed how states across nigeria are performing in terms of internally generated revenue, igr. At the close of 2017, revenue generation by the nigeria customs service stood at n1. Internally generated revenue is one of the ways through which nigeria. States generate taxes through internally generated revenue, and state allocations to health are used by the state ministry of health smoh to purchase health services for citizens. This report is the summary of a scoping study meant to serve as input into the process. Internally generated revenue igr and infrastructural. The half year 2018 states and fct igr figure hits n579.
Addressing revenue leakages in nigeria eme, okechukwu innocent chukwurah, daniel c. Internally generated revenue archives premium times nigeria. Abstract local government is faced with varieties of difficulties to source adequate revenue from federal government, state government and internally generated. Sources of government revenue in nigeria nigerian finder. The national bureau of statistics publishes internally generated revenue at state level for half year 2018. Analysis of internally generated revenue and infrastructural development of public universities in ondo state, nigeria akinrotimi iyiomo oyetakin ph. A simple random sampling technique was adopted for the selection of 160 responding out of the 572 staff of the oyo state internal revenue service of the ministry of finance.
Get free research paper on evaluation of internally generated revenue and economic growth of kano state from 19992014 project topics and materials in nigeria. The national bureau of statistics nbs, says in the first half of 2019, the 36 states the federation and the federal capital territory fct, generated n691. Poor staffing or poor training for updating knowledge on assessment and collection. This is because the state as the second tier of government needs revenue to. The internally generated revenue of lagos state has. Internally generated revenue archives the guardian nigeria. Findings showed that the ratio of vat revenue to gnp averaged 1. Olusegun banjo, has said that the state government recorded internally generated revenue igr of about n103. The study established that vat is a consumption tax on economic operations including imports. Read all the latest news, breaking stories, top headlines, opinion, pictures and videos about internally generated revenue from nigeria and the world on today.
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