ABSTRACT
The study investigates the impact of
Federation Account Allocated Funds and Internally Generated Revenue on Economic
Growth in Nigeria. The low level of economic growth d from the and development
in Nigeria despite the huge amount of revenue allocate generated Federation
Account to the three tiers of government and the internally motivated revenues
accruing to them to complement the statutory allocations actually this study.
The study makes use of annual time series data covering a period of36 years,
which is from 1981 to 2016. The data on Real Gross Domestic Product (RGDP),
Federation Account Allocated Funds to the Federal Government (FAFG), State Government
(FASG), Local Government (FALG), State Internally Generated Revenue (SIGR) and
Local Government Internally Generated Revenue (LIGR) were sourced from the
Central Bank of Nigeria (CBN) Statistical Bulletin. Data on Per Capita Income
(PCI) were obtained from the World Bank webs ite while data on Federal
Government Internally Generated Revenue (FIGR) were collected from CBN annual
reports. The study employed Ordinary Least Squares (OLS) method for data
analysis and test of hypotheses. Unit root test were carried out on the data
sets of the individual variables using Augmented Dickey-Fuller (ADF) in order
to prevent spurious regression results and to establish stationarii'y of data.
For easy analyses and interpretations, the study was organized in four models
using multiple-regress ion analysis with the aid of E-views version 9. The
result of the regression analysis conducted based on F-statistics, revealed
that Federation Account Allocated Funds and Internally Generated Revenue
sign/icantly and positively impacted on Economic Growth in Nigeria. The null
hypotheses (Hoj — Ho4) were all rejected as the p-values were at 0.000 <
0.05 level of sign flcance The individual results obtainedfrom the tstatistics
revealed that federation account allocatedfund s to the state governments had
negative impact on all the economic indicators used asproxyfor economic growth
while allocation to the local governmen had robust and impact on RGDP and PCI
Revenue allocation to the federal government has insignflcant negative impact
on PCJ but signfi cant positive impact on RGDP. The findings also indicated
that SIGR and LIGR had strong and signfican positive influence on RGDP and PCI
while FIGR had signflcantposjj impact on RGDP but impact on PCI The study
concludes that Federation Account Allocated Funds and Internally Generated
Revenue have strong and positive relationshj with economic growth in Nigeria, properly utilized. Thus, reappraisal of revenue sharing formula to reach
optimal formula that could guarantee equitability and fairness in revenue
sharing has been suggested in this study. The study is also recommending
formulation of government policies that could eradicate mismanagement
misappropriation and embezzlement o fgovernment funds in the Nigerian public
governance system.
OMODERO, O (2021). Impact Of Federation Account Allocated Funds And Internally Generated Revenue On Nigeria’s Economic Growth . Mouau.afribary.org: Retrieved Nov 01, 2024, from https://repository.mouau.edu.ng/work/view/impact-of-federation-account-allocated-funds-and-internally-generated-revenue-on-nigerias-economic-growth-7-2
ONYINYECHI, OMODERO. "Impact Of Federation Account Allocated Funds And Internally Generated Revenue On Nigeria’s Economic Growth " Mouau.afribary.org. Mouau.afribary.org, 13 Jul. 2021, https://repository.mouau.edu.ng/work/view/impact-of-federation-account-allocated-funds-and-internally-generated-revenue-on-nigerias-economic-growth-7-2. Accessed 01 Nov. 2024.
ONYINYECHI, OMODERO. "Impact Of Federation Account Allocated Funds And Internally Generated Revenue On Nigeria’s Economic Growth ". Mouau.afribary.org, Mouau.afribary.org, 13 Jul. 2021. Web. 01 Nov. 2024. < https://repository.mouau.edu.ng/work/view/impact-of-federation-account-allocated-funds-and-internally-generated-revenue-on-nigerias-economic-growth-7-2 >.
ONYINYECHI, OMODERO. "Impact Of Federation Account Allocated Funds And Internally Generated Revenue On Nigeria’s Economic Growth " Mouau.afribary.org (2021). Accessed 01 Nov. 2024. https://repository.mouau.edu.ng/work/view/impact-of-federation-account-allocated-funds-and-internally-generated-revenue-on-nigerias-economic-growth-7-2