Implications for Rural Development of the Role of Local Government Internal Revenue in Fostering Social Economic Development in Nigeria

Abstract

The study's analysis looked into how Nigeria's economic progress was affected by internally generated revenue, or IGR. Nigerian states' and local governments' unable to make enough money to cover with their spending responsibilities has been a significant challenge; corruption and the misuse of IGR have continued to be a hindrance to Nigeria's economic development, which is why the citizens are calling for change. This study used an ex-post facto research design to specifically examine the effects of total IGR (TIGR), Federal Government Independent Revenue (FGIR), States IGR (SIGR), and Local IGR (LIGR) Governments IGR on the country's Real Gross Domestic Product (RGDP), which is a proxy for economic development. The time series data used covered a period from 1981 to 2016 and were obtained from the Central Bank of Nigeria (CBN) Statistical Bulletin. The statistical tool used for the data analysis was the multi-regression and t-test for test of hypotheses. that FGIR likewise had a positive and substantial influence on RGDP, whereas TIGR, SIGR, and LIGR all had a strong and significant positive impact (p-value = 0.000 < 0.05). The dependent and independent variables had a strong association with one another. According to the study, IGR has a good influence, but there isn't enough physical evidence to support this claim. As a result, government measures that might end unethical behavior in the government system are needed. The study also suggests that government officials with a track record of corruption should not be permitted to continue serving in their current capacities; instead, those with exceptional integrity should be given the chance to hold sensitive government jobs that could support the goals of economic development.