Revenue Mobilization and Investment on Basic Amenities of Local Governments in Nigeria
Article Sidebar
Main Article Content
Abstract
This paper examined the effects of revenue mobilization and investment on basic amenities of local government in
Nigeria. Secondary data were collected from the Central Bank of Nigeria Annual Statistical Bulletin from 1993-
2017. Investment in basic amenities was proxy by monetary value of basic amenities while revenue mobilization
was proxy by federal government allocation, state government allocation, value added tax, internally generated
revenue and grants to local governments in Nigeria. Ordinary Least Square (OLS), Augmented Dickey Fuller Test,
Johansen Co-integration test, normalized co-integrating equations, parsimonious vector error correction model and
pair-wise causality tests were used to conduct the investigations and analysis. The empirical findings based on the
models found that value added tax, internally generated revenue and grant have negative and significant effect on
investment on basic amenities while federal allocation and state allocation have positive effect on the value of basic
amenities. The unit root result (ADF) showed that the variables were stationary at the first difference of Order 1 (1).
The co-integration tests revealed a long run dynamic relationship between the dependent and independent variables
in the models. The parsimonious model summary shows that accounting bases explains a strong and positive
significant relationship between the dependent and independent variables. However, the direction of causality
between the accounting bases treasury management is mixed indicating uni and bi-directional causality. The study
concludes that local government revenue has significant effect on investment of basic amenities of Nigeria local
governments.
Article Details
Issue
Section
This work is licensed under a Creative Commons Attribution 4.0 International License.
How to Cite
References
Alshujairi, M. (2014). Government accounting system reform and the adoption of IPSAS in Iraq. Research Journal
of Finance and Accounting, 5 (24), 1- 20.
Amin, A.(2018).Impact of internally generated revenue on community development :A case study of Asa local
government area, Kwara State. International Journal of Politics and Good Governance, IX, (9.2)11-29.
Atuilik, W. (2013).The relationship between the adoption of International Public Sector Accounting Standards
(IPSAS) by governments and perceived levels of corruption. Doctorate dissertation, Capella University,
USA.
Brooks, C., (2008). Introductory Econometrics for Finance. Cambridge University.
Dada, R. A., Adebayo, I. A., & Adeduro, O. A. (2017). An assessment of revenue mobilization in Nigeria local
government: Problems and Prospects. Archives of Business Research, 5(9), 119-127.
Dreze, Jean and Mamta Murthi. (2001). Fertility, education and development: Evidence from India. Population and
Development Review 27: 33-63.
Ediagbonya, K. (2013). The roles of entrepreneurship education in ensuring economic empowerment and
development. Journal of Business Administration and Education, 4(1), 35-46
Ehule, A. (2015). The impact of internally generated revenue on performance of public sector. M.Sc. Thesis,
University of Port Harcourt.
Emenuga, C. (1993). The search for an acceptable revenue allocation formula: The National Question and
Economic Development in Nigeria Ibadan. Nigerian Economic Society.
Essien, N. (2015). Impact of tax revenue on economic growth in Nigeria. M.sc. thesis, University of Port Harcourt.
Essien, N. (2015). Impact of tax revenue on economic growth in Nigeria. M.sc. thesis, University of Port Harcourt.
Federal Accounts Allocation Committee (FAAC) Sub Committee (2012).A manual on the implementation of
International Public Sector Accounting Standards (IPSAS) for the three Tiers of Government in Nigeria
Granger, C. W. J. (1996). Investigating causal relations by econometric models and cross spectral models.
Econometrica 37: 424-438.
Gupta, I & Arup, M. (2002): Rural migrants and labour segmentation: Micro-Level Evidence from Delhi Slums
(January 12, 2002; Economic and Political Weekly, 37 N0 2)
Hair.Jr., J. F,(2006). Multivariant data analysis. New Jersey: Pearson International Edition.
Hutcheson, G. D., (2011). Ordinary least-squares regression. In L. Moutinho and G. D. Hutcheson , The SAGE
Dictionary of Quantitative Management Research: 224-228
Ijeoma, N. & Oghoghomeh, T. (2014).Adoption of international public sector accounting standards in Nigeria:
Expectations, benefits and challenges. Journal of Investment and Management, 3(1), 21-29
Ironkwe, U. I. & Ndah, E. (2016). Impact of internally generated revenue on performance of local government in
rivers state, Nigeria. International Journal of Business & Law Research 4(4),42-58.
Johansen, S., (1988). Statistical analysis of cointegration vectors. Journal of Economic Dynamics and Control,
(2–3), 231–254.
Kennedy, P (2008). A Guide to Econometric. 6th edn. Blackwell Publishing, Malden
Kumar Arun, R.B. (2013). A sociological study on retired government employs in Karnataka. (Special Reference to
Shimoga District). International Journal of Humanities and Social Science Invention, 1(3), 376-390.
Kundu, D. (1999). Bivariate generalized exponential distribution. Journal of Multivariate Analysis, vol 100, 581 -
Lucky, A. L., & Uzah, C. K., (2017). Monetary Policy Transmission Mechanisms and Domestic Real Investment in
Nigeria: A Time Series Study 1981-2015. IIARD International Journal of Economic and Financial
Management, 2 (2), 29 – 59.
Ocheni, S. (2012). Local Government Finance in Nigeria. JGGSDA.
Okolie, D., & Eze, F. (2006). Local government administration in Nigeria: Concepts and applications. Enugu: John
Jacob Classic Publishers Ltd.
Onwumere, J. U. J. (2009). Business and economic research methods. Enugu, Vougasen Limited.
Ostrom, V, & Ostrom, E (1971). A different approach to the study of public administration. Public Administration
Review, 31(2) 203-216.
Oviasuyi, P. O, (2011). Participation of the citizens in governance. Journal of Social Sciences, 24 (2), 81-86.
Oviasuyi, R.O; (2010). Constraints of local government administration in Nigeria. (www.krepublisher.com)
Vincent ,O. O. (2001). Fiscal federalism: the Nigerian experience, public lecture series no.4