Impact Of Federation Account Allocated Funds And Internally Generated Revenue On Nigeria’s Economic Growth

OMODERO CORDELIA ONYINYECHI | 195 pages (46262 words) | Theses

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.

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APA

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

MLA 8th

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.

MLA7

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 >.

Chicago

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

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