SocioEconomic Challenges (Dec 2023)
Internally generated revenue and economic growth in Rivers State, Nigeria
Abstract
This paper summarises the arguments and counterarguments within the scientific discussion on the issue of internally generated revenue and economic growth in Rivers, Nigeria. The main purpose of the research was to investigate the correlation between internally generated revenue and economic growth in Rivers State, Nigeria. Systematisation of the literary sources and approaches for solving the problem indicates that the Rivers State government in Nigeria faces numerous challenges, including insufficient tax information, limited cooperation from taxpayers, negative perceptions about tax revenue utilisation, the complexity of taxes and the tax system, inadequate capacity, and limited training for tax authorities. The immediate restoration of this matter is imperative, making the resolution of this scientific problem highly relevant. In this study, we investigate the internally generated revenue and economic growth in Rivers State, Nigeria, using both ex-post-facto and exploratory research approaches as methodological tools. The data utilised in this study were obtained from the Central Bank of Nigeria (CBN) Statistical Bulletin and the Rivers State Inland Revenue Services (RSIRS) Annual Reports, covering the period from 2010 to 2021. The data were subjected to analysis using the Econometric Model of Linear Regression methods, utilising the SPSS 25 software. The analysis incorporates macroeconomic data pertaining to internally generated revenue and economic growth, specifically represented by the real gross domestic product, for the period spanning from 2010 to 2021. The paper presents the results of an empirical analysis, which revealed a significant correlation between internally generated revenue and economic growth in the state of Rivers. The research findings indicate a statistically significant correlation between internally generated revenue and the economic growth of Rivers State. The study thus proposed that the legislative branch of the state should prioritise the revision of tax laws to align with present economic conditions. Additionally, as the state focuses on exploring strategies to enhance its internally generated revenue (IGR), it should also devote attention to other facets of public finance management that directly affect its ability to not only generate revenue but also effectively allocate it for the betterment of the public.
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