Nondeductibility of expense incurred in generating taxexempt income. 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. The needed revenue generated for such developmental projects like construction of accessible roads, building of public schools, health care centres, construction of bridges are generated from taxes, royalties, haulages, fines, and grants from the states, national and international governments. An assessment of revenue generation drive of lagos state. State internally generated revenue tables for nigeria slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Okpe 2003 submits that petroleum profit is levied on the current year basis noting that the basis period for petroleum profit tax ppt is the actual profit of.
Developing internally generated revenue in an era of diversification. Nigeria, after about 50 years of independent is still engulfed in the problem of how to share centrally generated revenue among the local governments, states. The problems and prospects of taxation as a source of. Nigerian states by internally generated revenue igr. Hence, the problem of poor internal generated revenue in most local government in nigeria. Again, its me scholes0, your nairaland statistician general state rank. Tax is a compulsory levy imposed by government on individuals and companies for the various legitimate function of the state olaoye, 2008. How the finance act seeks to address the taxrevenue gap. Nigeria using a disaggregated framework to account for the different sources of revenue in nigeria. Internally generated revenue igr and effectiveness of. Its impact on government developmental effort a study of selected local council in kogi east senatorial district edogbanya, adejoh. Nigeria lies within the tropics with two main vegetation zones. Nigeria customs generate n1 trillion revenue in 2017 today.
This is why scholars and researchers of national political issues have upheld that revenue allocation in nigeria has generated a lot of controversy in recent times. Internally generated revenue archives premium times nigeria. This work is focused on the modeling of the monthly internally generated revenue of rivers state of nigeria. Tax avoidance and evasion do not affect the level of tax revenue generated in the state.
Nigeria in terms of it share of total revenue, contributing over 70% of government revenue and 95% of foreign exchange earnings odusola, 2006. Lagos state retains its number one position in igr with a total revenue generation of n268. 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. Get free research paper on effects of value added tax on internally generated revenue in lagos state, nigeria research project topics and materials in nigeria. Revenue generation and local government administration in. Forum ngf plans a peerlearning workshop to assist states to.
A number of studies have been carried out on problems of revenue generation in nigeria. The general objective of this study is to examine the impacts of value added tax on revenue generation in nigeria. Overall, government revenue can be divided into oil revenue and nonoil revenue and these have been highlighted below. State internally generated revenue tables in nigeria. Broadly, states in nigeria get barely oneeighth of the. In nigeria oil revenue seems to be the major source of revenue basically because others sources are. Fiscal federalism, governance and internally generated revenue.
Impact of personal income tax on internally generated revenue performance in oyo state nassar, m. 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. Graph and download economic data for general government revenue for nigeria ngaggrg01gdppt from 2004 to 2020 about nigeria, revenue, reo, and government. 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. Lagos state generates more igr than 32 states combined. Addressing revenue leakages in nigeria eme, okechukwu innocent chukwurah, daniel c. Best accounting software for small business owners in nigeria. Internally generated revenue of nigerian states trends.
Only time will tell, however, if many states will take the adequate steps to create a transparent and efficient tax stystem that will be deemed legiimate by. Tax avoidance and evasion affect the level of tax revenue generated in the. The national tax policy is an initiative of the federal government of nigeria which is being. This study assessed the effects of internally generated revenue on infrastructural development in akwa ibom state.
Read all the latest news, breaking stories, top headlines, opinion, pictures and videos about internally generated revenue from nigeria and the world on today. Internally generated revenue at state level national bureau of. The oil producing states also featured prominently in the top ten in terms. Relevance of tax revenue resources to infrastructural. The nigeria customs service on thursday recorded its highest revenue collection ever with a total generated revenue of n1. The oyo state government has warned that it will not tolerate any individual, group, investor or organisation seeking to sabotage its internal. 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. At the close of 2017, revenue generation by the nigeria customs service stood at n1. This is the latest report by the nigeria bureau of statistics on the amount of internally generated revenue igr by nigerian states for the 2015 fiscal economic year. However these stats are a useful and worrying guide to each states internally generated revenue igr. To raise its internallygenerated revenue, the osun state government on monday announced that butchers in the state would henceforth pay. Revenue generation and local government administration in nigeria 19992007. Political and economic instability is one of the problems acredited to unfair derivative principle in nigeria, as states were at loggerhead with the federal government, and the financial weakness experienced by most states. Nigerians under the law are to pay 25% of their total worldwide income while foreign individuals are to pay 25% of the profit made in nigeria only.
Lagos internally generated revenue rises by n37b, hits. The population of the study consisted of all the 102 university administrators from the seventeen federal universities in southern nigeria. So, today i will consider the top richest state in nigeria 2016 based on the internally generated revenue igr of each state. Value added tax vat and inflation in nigeria 1990 to 2003 olaoye clement olatunji. Nigerias richest state in 2016 by internallygenerated. Nigerian states by internally generated revenue igr 2015 politics 4 nairaland. The purpose of the study was mainly to identify the major sources and utilization of internally generated financial revenue by nigerian university administrators. The national tax policy seeks to provide a set of guidelines, rules and modus operandi that would regulate nigerias tax system and provide a basis for tax legislation and tax administration in nigeria. If the smes gdp contribution could be translated into tax revenue, governments internally generated revenue could make significant appreciation ali et al. Other poor internal revenue earners are gombe which generated n2. To navigate through the ribbon, use standard browser navigation keys. To examine the relationship between value added tax and revenue generation in nigeria to establish the effects of value added tax on revenue generation in nigeria 1.
This push by the nigeria governors forum to increase internally generated revenue is a step in the right direction towards financial autonomy for states, and possibly, true federalism. The lagos state government has said that its internally generated revenue igr, increased by n36. Problems and prospects of revenue allocation in nigeria. Olusegun banjo, has said that the state government recorded internallygenerated revenue igr of about n103. It needed resources for accomplishing its social and economic goals. The particular realization analyzed and herein called rigr spans from 2007 to 2012. The lagos state commissioner for economic planning and budget, mr. Sources of government revenue in nigeria nigerian finder. Annual summary of tax revenue collected in nigeria from 2000 2014 source. Fiscal federalism, governance and internally generated. In nigeria oil revenue seems to be the major source of revenue basically because others sources are not adequately harnessed effectively.
Developing internally generated revenue in an era of. The consortium was effectively given three taxfree. The national bureau of statistics publishes internally generated revenue at state. 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. Nigeria government revenues 20102019 data 20202022. Nigerias oilreliance at 85% of government revenues and similar estimations are. Taxation, revenue allocation and fiscal federalism core. 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. Value added tax vat and inflation in nigeria 1990 to 2003.
The dependency of nigerian states on remittances from the federal government is well known. Nigerian states and internally generated revenue logbaby. Tax compliance barriers and internally generated revenue. Abstract local government is faced with varieties of difficulties to source adequate revenue from federal government, state government and internally generated. 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. At a first glance, the data was not surprising as states in southern nigeria continue to show dominance in terms of economic activity. If you continue browsing the site, you agree to the use of cookies on this website. General government revenue for nigeria ngaggrg01gdppt.
Download nigerias finance bill insights series the finance. Looking at the composition of igr at state level is higher than that of local government level. Pdf modeling internally generated revenue igr of local. 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. This online research paper is approved and well researched for final year students and under graduates in accountancy, business administration, computer science, economics, electrical and electronics engineering, architecture. The researcher had adopted the descriptive research approach. This paper discusses the role of internally generated revenue igr as inevitable alternative funding for higher education in nigeria. This was the first time a concerted effort was made by the. Tax identification number tin in nigeria, every citizen of nigeria working with the government, the private sector or owns. Revenue generation in nigeria state governments is principally derived from tax. 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. Revenue generation is the nucleus and the path to modern development.
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