A LEGAL APPRAISAL OF INTERNALLY GENERATED REVENUE IN NIGERIA AS A CATALYST TOWARDS ECONOMIC DEVELOPMENT

Abstract

This article examines the sources of internally generated revenue in Nigeria. It also examines
Constitutional provisions which empower states on revenue collection. The article reveals
inconsistencies between the relevant constitutional provisions and section 4 (1) of the
Allocation of Revenue (Federation Account, Etc.) Act, which provides that in addition to the
allocation made from the Federation Account to Local Government Councils, each state must
distribute ten percent of its internally generated revenue among the local government councils
in the state. Thus, each state government is expected to pay ten percent of its internally
generated revenue to local government councils in the state and not compel them to pay their
internally generated revenue into state accounts, giving them ten percent of it in return. The
paper concludes that internally generated revenue is the live wire of the government; therefore,
the constitutional provisions for Government Ministries, Departments, Agencies, at different
levels should be well followed, to ensure transparency and efficient economic developmental
objectives.