Internally Generated Revenue's Effect on Local Government Performance and Economic Development in Rivers State, Nigeria

Abstract

The study looked into how Nigeria's economic progress was affected by internally generated revenue, or IGR. The study looks into how internally generated revenue affects local governments' performance in the state of Rivers. The money that the federal, state, and municipal governments make within their own borders is referred to as internally generated revenue, or IGR. IGR for state governments has also been defined as the money received within the state from a variety of sources, including motor vehicle licenses, taxes (pay as you earn, direct assessment, capital gain taxes, etc.), and other sources. To direct the investigation, two research questions and two hypotheses were developed. For the study, the ex-Post Facto Research Design, also known as the Causal Comparative Design, was used. For the study, the Ogba/Egbema/Ndoni Local Government Council was specifically chosen. Data from the Council's 2006–2013 financial statements, obtained from the office of the Auditor General for Local Government, was used for statistical analysis the government. The hypotheses were tested using the t-statistics analysis. One of the study's primary conclusions was that tax income had a slight but favorable impact on road upkeep and building. The study came to the conclusion that both tax and non-tax revenue are essential components in enhancing the performance of local government councils in Rivers State, notwithstanding the negligible impact of tax money on road building and maintenance. Therefore, several suggestions were made in this respect.