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

Charles G. Okon & Uwem E. Uwah

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Abstract

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.

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